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Query???

CA CS PARUL MEHRA (CA) (44 Points)

03 February 2011

Hi guys...

Can u guide me reagarding this??

house property purchased in 1975 for Rs. 45000 and sold in 2011 for 1 crore

plz explain the provisions to claim exemption in tax for resident and non resident both.

thnx a ton...

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7 Replies

harish .k (STUDING) (306 Points)
Replied 03 February 2011

Its a Long term Captial Gain on sale of Residential House property , it is taxable @ 20% , to get exemption from LTCG the sale consideration amount received should be deposited in a Schedule bank in Captial gains Scheme A/c with in 6 months from the date of sale of Asset , other wise it is fully taxable amount .

In case of resident person

In case of resident indian it is Fully taxable as LTCG @ 20%

To get Exemption the amt should be deposited in a Captial gains Scheme a/c in a Schedule Bank and from that a/c only the Person should Draw the amount and Purchase the another Residential House property with in 3 Yrs either construct or Purchase should be done with in 3 yrs from the date of sale .

Show the Certificate at the time of Filling the return as the Sale consideration is deposited in a Captial gains a/c as a proof

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Sagar Devani (Corporate and International Taxation) (1174 Points)
Replied 03 February 2011

hey you can get indexation benifit....

Shweta Bansal (CA) (175 Points)
Replied 03 February 2011

Hey you can clain exemption u/s 54, 54EC and 54F..........

ashoka r d (senior audit assistant) (82 Points)
Replied 03 February 2011

certainly there is a gain and that is long-term gain. to claim exemption the options are;

1.purchase a residentail house 1 year before the date of sale or 2 years from the date of sale or construct a residentail house within 3 years from the date of sale

2.under section 54F- invest the gain amount only in specified bonds having a lock in period of 3 years like bonds issued by RECL, NHAI etc.