Neha Bhattar (none) (170 Points)
06 August 2013IN CASE THE LTCG IS BEING REINVESTED IN A PLOT.
REGISTRY OF THE PLOT HAS NOT YET BEEN DONE.... ONLY AN AGREEMENT HAS BEEN SIGNED BETWEEN THE PARTIES AND A SMALL ADVANCE RECEIVED.....
WILL THIS BE CONSIDERED AS REINVESTMENT AND EXEMPTION BE GRANTED...???? KINDLY REPLY....
Mihir
(Wealth Manager)
(5293 Points)
Replied 06 August 2013
Investment should be in another property within a specified time limit. The agreement has been signed, stamped and registered. Only mutation of records is pending. Advance paid shall be considered as reinvestment but only upto the advance paid. The rest of the amount payable to reduce or eliminate the ltcg will be a question.
Neha Bhattar
(none)
(170 Points)
Replied 06 August 2013
I MENTIONED ABOVE .... IT HAS NOT YET BEEN REGISTERED.... ONLY AN AGREEMENT HAS BEEN MADE.....
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 06 August 2013
To avoid these limitatins,IT department provides you Capital Gain Depository Scheme.entire amount of deposit in C.G.D.S is allowed as exemption for capital gain purpose.and later u can transfer amount from this to seller.In ur case as mihir told u can get exemption up to advance paid and to get remaining amount exempt deposit remaining amount in to capital gain depository scheme with in 6 months from date of arise of capital gain and such remaining amount should be utilised as per prescribed time in IT act
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