Capital gain tax

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18 Points Joined March 2007

Dear Sir,
One of My Client is having Residential Property (row block) and Now he had converted into Commercial Property by constructing Shop on the same and want to sale the shop , proceeds arising from sale shop is to be utilised for purchase of residential property

My Question

1. whether capital Gain Tax is applicable on conversion of Residential Property into Commercial Property by constructing Shop 

2 Wat will be cost of acquisition on sale of Shop ( Cost of Residential Property )

3 Whether Indexetion benefit will be available

4  Also Purchase of Residential Property from sale proceeds of Shop, Whether deduction will be available from capital gain arising from sale of shop

 

 

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On 22 March 2019 at 13:03 Report
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paid assistant
130 Points Joined November 2018

1. No Capital gains on conversion into commercial property, hence no CG Tax

2. Cost of acquisition will be cost on purchase of Residential property

3. yes, indexation benefit will be available

4. No, it won't be allowed , (please read sec 54 of IT act)

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On 22 March 2019 at 13:08
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Team Lead
7558 Points Joined November 2011
you can claim exemption under 54EC upto 50lacs
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On 22 March 2019 at 13:44
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18 Points Joined March 2007

Sir.

Thanxs for answering

With reference to Point No 4 As per Section 54 F Sale proceed from commercial property invested in residential property 

deduction will be available

Plz advice

 

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On 23 March 2019 at 20:19
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STUDENT
52 Points Joined January 2013

yes 54F will be available

 

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On 23 March 2019 at 20:23


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