Dharmendra Jain (Mcom, LLB) (142 Points)
02 July 2010I sold my residential House in May 2009 at Rs. 20.00 Lacs by cheque .I had only house at that time and till date I have not purchased any house. The house was constructed in 2001. The plot was purchased in 1990. at cost Rs. 60,000/- The construction cost was appx. 10.00 Lacs. What is best procedure to compute minimum income tax to be paid. And let me advise the techniques also to save Income Tax.
Jimil Shah
(none)
(57 Points)
Replied 03 July 2010
Sale consideration = 20,00,000
less : indexed cost of plot = ( 2,08,351)
less : indexed cost of Construction = (14,83,568)
IF U WANT TO SAVE TAX , INVEST MONEY IN CONSTRUCTION OR PURCHASE OF RESIDENTIAL PROPERTY WITHIN 3 YEARS FROM DATE OF SALE.
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 03 July 2010
dear dharmendra
deposit the amount of capital gain before 31st july in capital gain scheme otherwise u can not claim exemption if u want to construct or purchase a new house after the month of july.this is the only option for u to reduce tax to minmum or exempt.
regards
tarun rustagi
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 03 July 2010
capital gain account scheme is maintained by schedule banks.
regards
tarun rustagi
harish .k
(STUDING)
(306 Points)
Replied 03 July 2010
Mr .tarun rustagi is right that' s the only option u have to exempt from LTCG otherwise it is taxable in current yr
Reena Verma
(CA Finalist)
(417 Points)
Replied 05 July 2010
Sale consideration 20,00,000
less : indexed cost of plot ( 2,08,352)
less : indexed cost of Construction (14,83,568)
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LTCG 308080
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TO CLAIM THE EXEMPTION, YOU MUST PURCHASE A RESIDENTIAL HOUSE WITHIN TWO YEARS OR CONSTUCT A NEW HOUSE WITHIN 3 YEARS FROM THE DATE OF SALE WITH THE LOCK IN PERIOD OF 3 YEARS.
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