I purched house in 2001 and sold on 15 may 2010, The capital gain was 8.5 lacks.If i purchase house within 2-3 month is it my capital gain get adjusted for ready house not in construction.What is the proper rule for LTCG.
3 Replies
CA. Arpita Singhal
(Partner)
(100 Points)
Replied 27 April 2011
as per Section 54 an exemption can be claimed of the LTCG arriving on sale of a residential house property.
to claim the exemption a house property shall be purchased one yr before or within 2 yrs after the transfer of original HP. Amt of exemption will be:
i)if LTCG is less then or equal to the Cost of new HP-Entire LTCG will be exempt
ii)if LTCG is higher than cost of new HP-difference between LTCG & cost of new house will be chargeable to tax as LTCG
NEw hp should not be transferred within a period of 3yrs frm the date of purchase.
Arniv Sharda
(CA Final)
(3006 Points)
Replied 27 April 2011
| Originally posted by : vikasgupta | ||
 |
as per section 54 you can purchase house 1 year before the tranfer or 2 year after the transfer or construction with in 3 year for getting exemption benifit |
 |
cheers
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
