Capital gain ( part-2 )--revision

vipul jain (EFFORTS NEVER FAIL) (2894 Points)

21 September 2011  

FAST TRACK ----- CAPITAL GAIN [ PART-2 ]

REVISION TIME 







EXEMPTIONS FROM CAPITAL GAINS AVAILABLE IN RESPECT OF ALL ASSETS  OTHER THAN INDUSTRIAL UNDERTAKINGS 

PROVISIONS PROFIT ON SALE OF PROPERTY USED FOR RESIDENCE [ SEC. 54 ] CAPITAL GAIN ON TRANSFER OF AGRICULTURAL LAND [ SEC. 54B ] INVESTMENT IN CERTAIN BONDS [ SEC. 54EC ] CAPITAL GAIN ON TRANSFER OF ANY CAPITAL ASSEST OTHER THAN A RHP [54F ]
1. Assessee Individual / HUF Individual Any Person Individual / HUF
2. Asset transferred Residential house prop. Urban Agricultural land used by individual or his parent for agricultural purposes durin 2 years preceding date of transfer. Any  Capital Asset

 

 

 

 

 

Any Capital Asset other than RHP

 

 

 

 

 

Note :- Exemption is not available if assessee -
  • owns more than 1 RHP ( other than new ) on date of transfer of original asset; or
  • purchase a RHP, other than new asset, within 1 year from date of trasfer of original asset.

 

 

















3. Nature of Transfered  Asset Long term Short term/ Long term Long term Long term
4. New asset to be purchased / constructed Residential house prop Agricultural land ( urban or rural )

 

 

 

 

 

Notified Bond ( Redeemable After 3 Years ) issued by :-
  • NHAI
  • RECL

 

 

 

 

 

 

NOTE :-

 

 

 

 

 

maximum exemption limit being50 lakhs in a F.Y.

 Residential house prop
5. Time limit for purchase / construction

 

 

 

 

 

Purchase :-

 

 

 

 

 

within a period of 1 year before or 2 years after, FROM THE DATE OF TRANSFER.















 

 

 

 

 

Constructions :-

 

 

 

 

 

within a period of 3 years  FROM THE DATE OF TRANSFER. 

 

 

 

 

 

















Purchase within 2 years from the date of transfer Within 6 months from the date of transfer

 

 

 

 

 

Purchase :-

 

 

 

 

 

within a period of 1 year before or 2 years after, FROM THE DATE OF TRANSFER. 















 

 

 

 

 

Constructions :-

 

 

 

 

 

within a period of 3 years  FROM THE DATE OF TRANSFER. 
 
 
















6. Deposit scheme Applicable Applicable Not applicable Applicable
7. Amount of exemption

 

 

 

 

 

Minimum of the following :-
  • Investment in New Assets.
  • Capital Gain

 

 

 

 

 

















 

 

 

 

 

Minimum of the following :-
  • Investment in New Assets.
  • Capital Gain

 

 

 

 

 

Minimum of the following :-
  • Investment in New Assets.
  • Capital Gain
 ( Capital Gain / Net Consideation ) * Amount Invested
8. Exemption will be withdrawn on- Transfer of new asset within 3 years from its purchase / constructio Transfer of new asset within 3 years from its purchase Transfer of new asset, conversion thereof in money or taking loan or advance on its security within 3 years from date of its acquisition
  • Assessee purchase within 2 years or constructs within 3 years from date of transfer of original asset, a residential house other than new house; or
  • transfers new assets within 3 years from date of its purchase / construction.
9. Taxability on withdrawal Amonut of exemption claimed earlier shall be reduced from the cost of acquisition of new asset. Amonut of exemption claimed earlier shall be reduced from the cost of acquisition of new asset. Exempted CG will be taxable as LTCG in P.Y. in which conversion / transfer took place.

 

 

 

 

 

Exempted CG will be taxable as LTCG in P.Y. in which :-
  • another residential house is purchased or constructed; or
  • new asset is transfered.

 

 

















10. Unutilized amount
  • The amount not utilized before the due date of filing ROI, then amount shall be deposited in Capital Gain Account Scheme..
  • The amount shuol be utilized within prescribed period.
  • IF AMOUNT NOT UTILIZED within prescribed perio shall be treated as LTCG OF P.Y. in which the prescribed TIME PERIOD EXPIRE.
  • The amount not utilized before the due date of filing ROI, then amount shall be deposited in Capital Gain Account Scheme..















  • The amount shuol be utilized within prescribed period.
  • IF AMOUNT NOT UTILIZED within prescribed perio shall be treated as LTCG OF P.Y. in which the prescribed TIME PERIOD EXPIRE.
 Not Applicable
  • The amount not utilized before the due date of filing ROI, then amount shall be deposited in Capital Gain Account Scheme..















  • The amount shuol be utilized within prescribed period.
  • IF AMOUNT NOT UTILIZED within prescribed perio shall be treated as LTCG OF P.Y. in which the prescribed TIME PERIOD EXPIRE.

 

 

















 

 

LTCG :-

 

 

















 

 

[ Unutilized amount * Amount of LTCG/Net consideration }

 

 

















 

 

































 

 

@ happy happy reading @

 

 

Regards

Vipul Jain