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Capital gains query ????

vipul (ca ipcc) (76 Points)

02 November 2014

1- What is the date of aquisation of DDA flat : Application date, Allotment letter date, Date of full payment, Payment of stamp duty, Conveyance deed date 2- can we receive full payment in cash or there are any restrictions ? 3- can we show cost of improvement with out having it or we have to show some bills against it ? 4- commission on sale can be paid in cash or we have to pay in cheque.? 5- can we show commission on sale paid to family members ? Please answer my few queries

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 02 November 2014

Date of acquisition is date of allotment because by allotment application for acquisition get finality ... 3.Obviously you need to produce evidence for improvement costs incurred. 2. Yes, consideration can be received in cash full or part. 4.Commission can be Paid in cash bcoz here Sec 40A(3) doesn't apply. 5. Yes..

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vipul (ca ipcc) (76 Points)
Replied 02 November 2014

IF CONSIDERATION RECIEVED IN CASH CAN WE DEPOSIT ENTIRE AMOUNT IN BANK ACCOUNT ? ISN'T ATTRACT INCOME TAX NOTICE
WHAT WILL BE THE DATE SALE
1. DATE OF AGREEMENT TO SELL
2. DATE OF REGISTRATION OF SALE DEED

Mihir (Wealth Manager) (5293 Points)
Replied 02 November 2014

You cannot make full payment in cash. You may pay by cheque as per the stamp value and the balance in cash. Avoid depositing large cash amount in bank.

vipul (ca ipcc) (76 Points)
Replied 02 November 2014

Originally posted by : Mihir
	You cannot make full payment in cash. You may pay by cheque as per the stamp value and the balance in cash. Avoid depositing large cash amount in bank.

suppose stamp value is 36 lakh and it received in cash

can i deposit the same in bank (if it would create problems)

i can just deposit capital gain amount which will be around 15 lakhs for saving tax to further invest in nhai bonds or recomend some better options with minimum lock in period othe than purchasing residencial property

Mihir (Wealth Manager) (5293 Points)
Replied 02 November 2014

If you receive 50 lacs and stamp value is 36, then accept 36 in cheque and balance 14 in cash. Now compute the capital gain using 36 as sale amount. Arrive at the long term capital gain, and invest that amount either in another property or in infra bonds or pay tax at 20% over it. Do not put 14 lacs cash in bank. Split it up, keep some with yourself, keep small portion in one bank and small portion in another bank and in another, buy gold, silver, NSC, deposit some in PPF.