Sale of Gold Jwellery - Section 54F

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Gold Jwellery sold for Rs. 2,80,000/- on different dates in F.Y 2009-2010 & the monies received thereof were invested in buying first Residential House property. The flat is under construction and possession is expected in September 2010. The Jwellery were received by gifts at the time of marriage (8 years back).

1.) Can benefit u/s 54F be claimed in F.Y 2009-2010. since acquisition cost is zero should the complete amount of 2,80,000/- be shown as gains. (Receipts of Gold sale are preserved)

2.) Will another Sale of Gold Jwellery by the same assessee in F.Y 2010-2011 qualify for benefit u/s 54F in F.Y 2010-2011.

Replies (3)

sec 49-- Cost of Acquisition of gift = cost of prev. owner

 

So, cost of acqusition of your jewellery should be cost of that person who has gifted you.

 

 sale price less indexed cost of acqusition.= Long term capital Gain

 

1)  yes, you can take benifit of sec 54F if you purchase Residential house property within 2 yrs or construct within 3 yrs from the date of sale or before 1 yr from the date of sale. But, you have to deposit the Net Proceed amount in Capital Gain A/c Scheme before due date of filling of Return.

 

2) Yes, you can claim exemption U/s 54F on sale of another jewellery against same house property. but that jwelley should be LTCA.

 

 

For claiming exemtion U/s 54F you have to invest Net Sale Consideration in Residential house property. if u invest less than Net Sale consideration u will get only proportionate deduction of capital gain.

Saurabh sir has given correct answer.

 

Raj the basic requirement to claim section 54F,

is that you should not own more than one house at the time of transfer of the original asset (gold).

 

So you have to see how many houses you are owning as well, before you dispose the asset and re-invest the proceeds.

If u have more than one house on the date of transfer of gold, you will have to claim sec 54EC, by investing in REC or NHAI bonds, within 6 months of date of sale of gold.

Mr.Raj

Gold Jewellery sold - Rs. 2,80,000/- on different dates in F.Y 2009-2010.

Gold - LTCA so qualifies for sec 54 F....

To claim exemption u/s 54F you should not own more than one house at the time of transfer....

therefore it should be kept in mind.....

 Cost of acquisition of Gold relates back to the cost of previous owner....so you can do indexation.....

The sale of gold (another) - you can go for 54 EC.....

To get entire gains exemption u/s 54f you have to invest the entire sale consideration and not gains in Pur/Const. of res. house..


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