Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Long term capital gain

732 views 1 replies

Ashok Monga

Adviser

161 Points Posted on 07 January 2012

A house which was purchased in the FY 1991-92 was sold in the FY 2010-11. The property was sold in May 2011 and two apartments were purchased in the same month. I am an individual tax payer.

1. What is the last date for filing Tax Return ?

2. Is it in order to purchase two residetial properties by selling one property to save Capital Gains Tax? What are the implications in terms of Long term Capital Gains tax provisions.

Replies (1)

Z

Tax Consultation (US and India)

2970 Points Posted on 07 January 2012

For the purpose of sec 54?

It depends on the facts of the case

If all those residential units (including appartments and ADJACENT flats) can be modified to unite and make it a single residential house property then assesse can claim ecemption having regards to decision made in (CIT v D. Ananda Basappa ( 2009 ) 20 DTR 266 (Kar)).

However if the house properties are scattered and can not be united then the exemption will be available to only one house property unit.

Cite: ITO Vs. Ms. Sushila M. Jhaveri

more detail on

/forum/exemption-u-s-54-180725.asp