Indudhar (Tax Advocate) (427 Points)
18 September 2009If a person sells a plot for Rs 5 lakh on 30-3-2009 & Repurchases different plot of Rs 5 lakh on 20-7-2009. What will be the long term capital gains on such transaction? Is LTCG exempt for AY 2009-10 on such transaction.. please help me guys with specific section.
CA Anurag Garg
(Chartered Accountant)
(339 Points)
Replied 18 September 2009
yes exempt u/s 54 it is case for capital asset bought for capital asset sold
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 18 September 2009
wht is the date of purchase of plot and wht is the amount
kirthi
(student)
(88 Points)
Replied 18 September 2009
| Originally posted by :Indudhar | ||
| " | If a person sells a plot for Rs 5 lakh on 30-3-2009 & Repurchases different plot of Rs 5 lakh on 20-7-2009. What will be the long term capital gains on such transaction? Is LTCG exempt for AY 2009-10 on such transaction.. please help me guys with specific section. | " |
Full Value of consideration 500000
Less: Indexed Cost of Acquisition
Less: Exempt u/s. 54F
C.Balaji
(Learner)
(1867 Points)
Replied 01 October 2009
sorry you can't claim exemption u/s 54 and 54f..... 54 - transfer of Res. house and Pur. of res. house..... 54f - transfer of LTC asset other than res. house and pur of res. house.... therefore transfer of plot means 54 does not apply and inorder to get exemption u/s 54f you need to pur or construct a res. house....since you invest in plot, there is no way of escape... you have to pay Long term Capital gains tax after deducting indexed cost of acquisition....54ec is also applicable in your case but investment should be made in specific assets for eg. REC bonds.. within six months from the date of transfer of LTCA...
Rajeev
(www.rkmco.com)
(985 Points)
Replied 01 October 2009
Section 54F of the IT Act: If you sell your Long Term Capital Asset (other than residential house) and invest the net consideration from the sale of the Long Term Capital Asset for constructing a residential house within a period of 36 months, you would not be charged for capital gains tax provided the cost of the residential house (including land) exceeds the net consideration from the sale of Long Term Capital Asset. If the amount spent for the construction of the house is less than the net consideration received, exemption from Capital Gains Tax would be proportionately reduced. This exemption is available provided you do not own a residential house on the date on which the transfer of the capital asset takes place. Moreover, this exemption is not for purchase of land alone but for construction of house thereon.
CA Lovenish Bansal
(JOB)
(343 Points)
Replied 02 October 2009
Max Payne
(employed)
(2569 Points)
Replied 02 October 2009
Purchase of plot, followed by construction
Circular : No. 667, dated 18-10-1993.
If the amount of capital gain for the purposes of section 54, and the net consideration for the purposes of section 54F, is appropriated towards purchase of a plot and also towards construction of a residential house thereon, the aggregate cost should be considered for determining the quantum of deduction under section 54/54F, provided that the acquisition of plot and also the construction thereon, are completed within the period specified in these sections
barkat ali
(auditors)
(32 Points)
Replied 02 December 2009
dear sir.
my client have purchased a property ( house) on 31/10/2008. as this property was very much in demand he made a purchase deed on 31/10/2008. he had sold a property (purchased in 1992-93)in 02/02/09 and wants to claim exemptions u/s 54f. can he claim the exemptions.
property purchased on 31/10/2008 for rs,15 lakhs as per purchase deed
property sold on 02/02/2009 for Rs,14,50,000/- ( propert purchased in the year 1992-93)
my question is that the property was sold on 02/02/2009 and he had purchased a property "EARLIER"in the month of oct-2008. whether u/s54f will apply on this transcations
regards
barkat
barkat ali
(auditors)
(32 Points)
Replied 03 December 2009
dear sir,
my client had sold a property in the assesement year 2009-10 & had purchased a property in the assesemant year 2008-9.
i want to know that the above property was purchased in 1992-93 & sold in 2009-10
he want to claims u/s 54f long term capital gain & had purchased "earlier" a property in the assesement year 2008-2009
details:
property purchased in the year 2008-09 12 lakhs
property sold in the year 2009-10 12 lakhs.
he had made advance & have registered the deed ( purchased deed) in the assesement year 2008-09 & have sold a property { long term capital gain} in the assesement year 2009-10 will he can get exemptions u/s 54f, as the purchase deed is been made in the assesement year 2008-09 & the sale deed in the assesement year 2009-10
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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