Dear friends,
I have got two queries :
A. Indexation benefit
Suppose I sell a long term capital asset. Can I avail the option of paying long term capital gain tax @ 10% instead of 20% by not availing indexation benefit.
B. Exemption u/s 54F
Suppose I decide the invest the long term capital gain in purchasing a plot and then construct it within the stipulated period of three years. For this I pay the price of the plot (which is more than the long term capital gain) to the developer and the residential plot is allotted in my name well within time. However, the developer for one or the other reason, fails to hand over the physical possession of the residential plot to me within three years, despite the fact that about 95% payment towards cost of the plot has been made by me. Since the construction has tobe completed within 3 years and as the fault is of builder as he did not hand over the possession in time, can i take this plea before Income Tax authorities and whether they would be extended the time limit of three years in my case?
pls answer accordingly and at the earliest
manish
CAclubindia
