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long term capital gain

04 August 2019

sir
capital gain arises from transfer of capital asset other than residential house property (hotel) and total sale price invested to purchase of new hotel in this case LTCG Is exempted or not?

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6 Replies

Kapadia Pravin (17259 Points)
Replied 04 August 2019

Not exempt

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nitin dhage (56 Points)
Replied 04 August 2019

Hello Team

Need your help/suggestion.

I have given my property on development agreement to the builder. I have received two flats as my share in this development agreement.

I have retained these flats for my self possession. I have calculated the Capital Gains on my property basis indexed value of year 2001 and sub registrar market valuation of the property of year 2001 ( Flat was actually purchased by me in the year 1984, hence, 2001 Base Index Value is considered). And I have considered the market value of the flat as per the sale price of flat sold by the builder from his share (Date of sale is the same date of Occupancy certificate received from the municipal authorities).

By doing the above calculation there is a Capital Gains coming up on the full overall property valuation (Two Flats). I would like to know do I have to pay the capital gains tax on this transaction or is there any exemption allowed ?

I have retained these two flats for my self possession and there is no sale or monetary transaction involved in my agreement. So I am of the opinion that there is No Capital Gains Tax applicable on this transaction.

I have received two units (two flats) in this agreement, both are retained for self post.

I need your expertise help and assistance to know if I have to pay any Capital Gains Tax or is it exempted as there is no sale involved, though I received two units (two flats) by giving one unit in development agreement with builder.

Thanks and regards

Nitin

Ruby Kumari (72 Points)
Replied 05 August 2019

u can get exemption u/ s 54E

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nitin dhage (56 Points)
Replied 05 August 2019

Thanks for your revert. please advise do I have to file IT return and disclose this information that Capital Gains is exempted U/S 54E to ensure IT team has record of our property. Thanks.

subhagan sreerangam (7040 Points)
Replied 05 August 2019

good clarification and information

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nitin dhage (56 Points)
Replied 12 August 2019

Hello Ruby Madam or any other CA Expert, can you please advise do I have to disclose the information of Capital Gains received and it is exempted U/s54E as it is used for self possession and there is no sale/monetary transaction involved in my IT returns now, or I can file my normal returns without any need of disclosing this Capital Gains information in my IT returns. would appreciate your suggestions and advise, many thanks in advance. Thanks.