Garvit Dave (Portfolio Analyst & Tax Consultant) (295 Points)
18 December 2012Hi Friends,
I have 3 houses in bangalore and out of these I have sold one house and my capital gain is approx 50 lakhs and capital gain tax after indexation is around 10 lakhs. I have info on 54 EC bonds but i want to invest in new house property.
can I still save my capital gain if I utilize it in buying my another house?
Please advice
Thanks
CA Manish
(Job)
(5264 Points)
Replied 18 December 2012
yes, you can purchase new house property to save tax.
HARPREET SINGH
(Chartered Accountant)
(79 Points)
Replied 18 December 2012
Yes u/s 54, you can claim exemption and can bought a new residential house but you cant sell that house for next 3 years.
Garvit Dave
(Portfolio Analyst & Tax Consultant)
(295 Points)
Replied 18 December 2012
| Originally posted by : CA Manish Malu | ||
 |
yes, you can purchase new house property to save tax. |
Do I need to put my capital gain amount in Capital gain saving scheme 1988 or i can directly use it for construction of new house? And if I can use it directly to build a house in 3 yrs than what is the use of CGSS 1988 account?... Please update me on the same
|
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 18 December 2012
HARPREET SINGH
(Chartered Accountant)
(79 Points)
Replied 18 December 2012
Hi Maish...Exemption is - you can use that money for construction in next 3 years and you can acquire new house 1 year before sale & upto 2 years from date of sale. If you have any excess money in hand out of sale receipts (CG portion), you have to deposit that money into Bank Account & have to route all transactions through that Account but if you have already spend whole CG portion in another residental house, no need to deposit.
HARPREET SINGH
(Chartered Accountant)
(79 Points)
Replied 18 December 2012
Sorry wrongly spelled Manish.
Above message is for Garvit too.
Garvit Dave
(Portfolio Analyst & Tax Consultant)
(295 Points)
Replied 18 December 2012
Dear Saurabh/Harpreet/ Manish,
As per sec 54F I should not own on the date of transfer of the original asset more than one residential house (other than the new house) where as i own 1 self occupied property and 1 let out property at present. Still I can purchase a new residential house and claim exemption on my capital gain tax......Please advise!!!!
Thanks & regards
Garvit
CA Manish
(Job)
(5264 Points)
Replied 18 December 2012
| Originally posted by : Garvit | ||
|
|
Dear Saurabh, As per sec 54F I should not own on the date of transfer of the original asset more than one residential house (other than the new house) where as i own 1 self occupied property and 1 let out property at present. Still I can purchase a new residential house and claim exemption on my capital gain tax......Please advise!!!! Thanks & regards Garvit |
 |
You are not supposed to claim exemption u/s 54f you have to claim exemption u/s 54.
Garvit Dave
(Portfolio Analyst & Tax Consultant)
(295 Points)
Replied 18 December 2012
Manish,
My main doubt is -i own 1 self occupied property and 1 let out property at present. Still I can purchase a new residential house and claim exemption on my capital gain tax......Please advise!!!!
CA Manish
(Job)
(5264 Points)
Replied 18 December 2012
| Originally posted by : Garvit | ||
|
|
Manish, My main doubt is -i own 1 self occupied property and 1 let out property at present. Still I can purchase a new residential house and claim exemption on my capital gain tax......Please advise!!!! |
|
Yes you can do so.
Back in the Game
(a)
(1273 Points)
Replied 18 December 2012
@ Garvit Have you held the asset(house property) sold for period of atleast 3 years....??
If u Satisfy above condition u can claim Exemption under Sec 54..Else No...
SUDAGAR.C
(Prop)
(119 Points)
Replied 19 December 2012
chitresh
(ipcc)
(23 Points)
Replied 19 December 2012
yes, you can purchase new house property to save tax.
enjoy 
!!!
CAclubindia
