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Capital gains

Murugan (Director) (25 Points)

08 December 2014

I have bought a property (Residential Land) in 2010. This is registered for 16 Lakhs. But I have taken a loan for 47 Lakhs from Axis bank. I am planning to sell the property now. What amout will be taken as the buy amount to calculate Capital Gains tax (16 Lakhs registered value or I can give proof for 47 Lakh loan amount)

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10 Replies

gbalakrishnan (owner) (1373 Points)
Replied 08 December 2014

My dear sir, for what purpose you took the loan from Axis bank is the main factor need to be considered as every action has a link with loan and your purchases please?

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Murugan (Director) (25 Points)
Replied 08 December 2014

Originally posted by : gbalakrishnan
	My dear sir, for what purpose you took the loan from Axis bank is the main factor need to be considered as every action has a link with loan and your purchases please?

I have taken Home Loan for purchasing the same plot

Z ( ) (2965 Points)
Replied 08 December 2014

Nope, you can't take 47 Lakhs cause if you try to prove that then you agree that you have purchased the property at gross undervalue and have evaded duty of the state

CA Kanj Goel (Division Manager) (372 Points)
Replied 08 December 2014

Yes the loan amount can not exceed the registery value of the property as it will be taxed in your hand as unexplained investment in section 69 of the Act.

subhash kumar jha (PROFESSION) (445 Points)
Replied 08 December 2014

1st in 2010 if stamp value of land is more than 16 lacs and difference betwen stamp value and 16lacs is more than 50,000 then u needs to pay tax u/s 56(ii)(vii) if u paid it at that time then take stamp value as cost of acquisition otherwise take only 16lacs as cost of acquisition. Don't take loan amount as cost of acquisition.

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uday bhat (sr manager) (30 Points)
Replied 08 December 2014

Can Exemption under Section Section 54 be claimed from Long Term Capital Gains Tax for selling a Residential Property and investing the entire or part of the LTCG in purchasing more than one residential Property within the stipulated periods . Kindly advise.

Deepak Talreja (22) (62 Points)
Replied 08 December 2014

Yes sir you can take exemption u/s 54.

Audit Executive (taxation) (186 Points)
Replied 08 December 2014

w.r.t. only 1 house in india u/s 54f

uday bhat (sr manager) (30 Points)
Replied 10 December 2014

Originally posted by : Babita Kwatra
	w.r.t. only 1 house in india u/s 54f

Madam

I think Section 54F relates to situation where LTCG due to Transfer of a Non-Residential Real Estate Property is proposed to be invested in RESIDENTIAL PROPERTY with in the stipulated periods in the IT Act.