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help mee plz

Priya . (CA -PCC) (131 Points)

04 April 2010

i need to know the answer for this sum, so plz help me.

Mrs. B sells her house acquired in may 1995 for Rs.4,50,000 for a consideration of Rs.13,00,000 in july 2009. In october 2009 she also sold a vacant plot of land for a consideration of Rs.16,20,000. This plot was purchased in June 1989 for Rs.1,00,000. a sum of Rs.30,000 was paid for sale of land as brokerage. She purchased a house in Jan -10 for a consideration of Rs.12,50,000. Compute the capital gain.

can exemption be granted u/s 54 for the first sale & u/s.54F for the second sale. i need to know if it exemption can be provided under sec 54F what is the amount.

help me

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8 Replies

CA Babit Khurana (learning is my passion) (338 Points)
Replied 04 April 2010

Sale OF House Property
Particular	Amount
Full Value of consderation	1300000
Less: Indexed cost of acq	1012100
(450000*632)/281
LTCG	287900.4
Less: deduction Under Secton 54	287900.4
Chargebale LTCG	0

Sale of Land
Full Value of consderation	1620000
Less: brokerage	-30000
Net considration	1590000
Less: Indexed cost of acq
(100000*632)/172	367441.9
LTCG	1222558
Less: deduction Under section 54F	739762.9
(1250000-287900=962100)
(962100*1222558)/(1590000)
Chargebale LTCG	482795.2

Notes: 1) When you sold house property and purchase house property then full amount of LTCG exempt under section 54, provided
	a) Property should be purchased, 1 year before or 2 year after in case of purchase
	b) If constructed then should be construct in 3 years after tranfer.

2) When you sale any capital assets and purchase house property then you can claim exemption under section 54F
formula for caluclating exemption
(Investment in purchase of house property* LTCG)/(Net considration)

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Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 05 April 2010

Thanks guys

MILAN BOTADRA (CEO) (21 Points)
Replied 05 April 2010

Dear Sir,
On 21.03.1988, my father had opened an NSS account with Post Office.The present balance is Rs 5,04,828/- he withdraw Rs.50000/- every years. he is now 75 years of age and not in very good health.he would kike to close the account and withdraw the entire amount without deduction of tax at source, as dealing with the Income Tax Department is not a pleasant exercise.The department owes refunds for over 10 years. Inspite of writing to Grievance Cell and the Income Tax Ombudsman there is no reply.Hence my desire to withdraw without deduction of tax at source.Obtaining a refund after deduction of tax will not be possible in my lifetime Hence the desire to close the account without deduction of Tax.

Pl. not that he is not filling his retuns since he is retaired for his bank job. (at list since 10 to 12 years).

Shall be thankful for your views in the matter.
Regards
Milan

Priya . (CA -PCC) (131 Points)
Replied 05 April 2010

thank u

but the answer in the book differs :(

even i got the same answer .

anyways thanks a lot

Priya . (CA -PCC) (131 Points)
Replied 06 April 2010

the ans s rs.543327.

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C.Balaji (Learner) (1867 Points)
Replied 06 April 2010

Dear Priya.....

In the Book....I think they have provided exemption u/s 54F to Land and no exemption to HP i.e.54....

I got this answer.....

	Building	Land
Sale Consideration	1300000	1620000
Less : EXP	-	30000
Net Consideration	1300000	1590000
Less : ICOA	1012100	367442
LTCG	287900	1222558
Less : 54 F	-	961131	(1250000*1222558/1590000)
CG	287900	261427

Total CG		549327