vaibhav (student) (221 Points)
07 August 2012Friends,,,,
I need your help as my one of friend is selling his house property.......
He will be given around 70,00,000 as consderation. but he will receive it as 35 lakh through cheqe and remaining in cash. so he has pland to buy one home for 45 lakh. You kindly help as how can he manage that Cash (35 lakh) and get exemption under capital gain.
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 07 August 2012
Guidence Value of the property registrered with Sub-registrar of Revenue authority at the time of sale deed or actual sale consideration whichever is higher will be the deemed consideration of of house property in this case. Whether your freind receive cash or cheque is immaterial.
Regarding cash of Rs.35 lakhs, he may purchase another house property by paying cash and balance with cheque payment.
you need to compute actual capital gain and apply exemption section U/S 54 or Section 54EC (investment in Bonds within 6 months from the date of sale or transfer) accordingly.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 August 2012
receiving cash is nowhere related to your accounts or incometax and such amount can not be used anywhere or deposited, if done so it would be deemed additional income and tax implications will be applicable.
CAclubindia
