Please help urgently sec 54 f

Tax queries 438 views 4 replies

PRIYA KANANI

CHARTERED ACCOUNTANT

127 Points Joined July 2011

Female assessee having two commercial properties sold as under-

1) COA: Rs 328840 dated 11.01.2008 sold for Rs 450000 on 15.07.2011

2) COA: Rs 120000 dated 17.05.1994 sold for Rs 1460000 on 30.08.2011

and purchased a residential house property in dec 2011 for Rs 1215500

so,

for the 1st property there will be capital loss amounting to Rs 18493 (450000- 328840 * 785/551)

and for the second house property there will be capital gain amounting to Rs 183592 (1460000- 120000*785/259) - (1096293 * 1215500/1460000) (Is exemption u/s 54F available?)

Are these calculations correct??

And, net capital gain amounting to Rs 165099 be taxed at flat 20% rate or will be aggregated in total income of the assessee?

Please help in the matter as soon as possible.

Replies (4)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Calculate CG/CL on both the properties and find out what is the Net gain/loss. If it is an gain whihc is less than the cost of property purchased then whole of the CG wud be exempt. If it is an loss, then the same can be adjusted against LTCG only.

How did u arrive at teh figure of 1096293

PRIYA KANANI

CHARTERED ACCOUNTANT

127 Points Joined July 2011

Rs 1096293 (capital gain for 2nd property) is calculated as under-

(1460000-120000*785/259)

and as per sec 54F amount of exemption is capital gain * cost of new asset / net consideration

therefore, 1096293 * 1215500/1460000

am i correct??

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Mr Balkishan, you cannot get exemption u/s 54F if the asset sold is an house property as the section speaks of any capital asset, other than residential house property. So u can claim exemptino only u/s section 54 or 54EC.

PRIYA KANANI

CHARTERED ACCOUNTANT

127 Points Joined July 2011

Originally posted by : Giridhar S Karandikar
	Mr Balkishan, you cannot get exemption u/s 54F if the asset sold is an house property as the section speaks of any capital asset, other than residential house property. So u can claim exemptino only u/s section 54 or 54EC.