Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Land sold and repurchased

Krishna (Manager - Genesis Tax Consultant) (531 Points)

27 May 2018

Hi Sir,

I bought a land on 2009 and sold it last month, now planning to repuchase land again, will I be exempt from capital gain?

Reply
Follow
Share

11 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 27 May 2018

Upgrade to CAclubindia Pro. Subscribe Now!

rama krishnan (12239 Points)
Replied 27 May 2018

instead cancel the sale deed executed by you last month

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 27 May 2018

Then what is the solution to avoid capital gain Sir?

rama krishnan (12239 Points)
Replied 27 May 2018

if you cancel the sale deed, then there's no sale of capital asset and hence no capital gain

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 27 May 2018

To save Capital gains tax the amount can be invested in any house property (sec. 54F) or in Cap. Gain Bonds (sec 54EC) etc etc ....... for exemption...

Upgrade to CAclubindia Pro. Subscribe Now!

rama krishnan (12239 Points)
Replied 27 May 2018

mr. Krishna is enquired the ways to save CG tax on re-acquisition of land sold by him last month

Krishna (Manager - Genesis Tax Consultant) (531 Points)
Replied 27 May 2018

Sir I sold the land and got the money from the buyer, how can I cancel the sale deed now, is it possible?

rama krishnan (12239 Points)
Replied 27 May 2018

There are two ways to cancel a duly registered deed -

i) by consent of both the parties - which has to be via a registered cancellation deed, on which stamp duty is payable.

ii) Via court on proving that the document is bad in itself due to flaw in consent etc.

in neither of the cases do you get the registration fee back