Ashwini krishnen (self) (48 Points)
25 September 2010Hi All,
A Property has been purchased for 19 Lacs + 3 Lacs for renovation = 22 Lacs is the total Purchase cost. The property was purchased in 2007 and was sold at 2010 at 42 Lacs. The Question is weather the reinvestment should be for 20 Lacs which is th profit or it should be for the full Rs 42/- for reinvestment in order to save IT .
Ashwini Krishnen (IPCC)
NUKUL GARG
(Senior Associate Consultant)
(1231 Points)
Replied 25 September 2010
Here the capital Gain arising is 20 lakhs ,hence the capital gain is to be re-invested to get exemption in IT.
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 25 September 2010
Yes as rightly said by Mr.Nukul, its the CG which has to be re-invested
Sunshine
(Helping All)
(10575 Points)
Replied 25 September 2010
yes 20 lakhs need to be invested...so u can get exemption from ltcg u/s 54 or 54 EC.....
you needed to invest 42 lakhs in case the capital gain was on transfer of a long term capital asset other than residential property....
Gokul Viswanath Shenoy
(Company Secretary & Finance Manager)
(430 Points)
Replied 25 September 2010
the capital gain here is 20 lakhs..this amount is required to be invested to get exemption from CG u/s 54 or 54EC
narayan soni
(SERVICE AS ACCOUNTS MANAGER)
(24 Points)
Replied 25 September 2010
Dear Ashwin,
yes i agree with all, that their is a capital gain ( long term) so as per Gapital gain Act , if any assets sold after 3 years it will be consider as long term capital gain & Indexation will be their , bu if you invest within 6 months after Selling of property , i hope that the period you had shown will cross three years
i hope ,may be i correct
narayan soni
sachin kakkar
(CA)
(188 Points)
Replied 25 September 2010
Here the capital Gain arising is 20 lakhs ,hence the capital gain is to be re-invested to get exemption in IT.
CAclubindia
