long term capital gain
Querist :
Anonymous
(Querist) 28 January 2010
This query is : Resolved
the applicant sold flat on april 2008 for rs 12 lac which was purchased on 2000.01 for rs 5.25 lac now applicant want to invest the amount in new flat and installment starts from april 2009 the amount of flat is 27 lac.will the applicant get deduction or not
A V Vishal
(Expert) 28 January 2010
Certain basic details are missing in your case, where did you keep the sale proceeds after sale of the old flat?
sunildatta akole
(Expert) 28 January 2010
The applicant sold the flat in the year 2008 which was purchased in the year 2000-01. therefore for calculating long term capital gain the indexed cost must be take into consideration.
but you have purchased a flat for rs. 27 lac. therefore it is presume that you have reinvested your capital gain in another residencial house within three years. therefore the applicant get the deduction of the same. and no long term capital gain tax is payable on it.
sunildatta akole
(Expert) 28 January 2010
yes, it is necessary to invest the capital gain amount into capital gain tax saving schemes or bonds otherwise you are not entitled for above discussed benefit.
A V Vishal
(Expert) 28 January 2010
Refer Section 54:
In case the asset transferred is a long term capital asset being a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on the LTCG is available on the amount of investment in the new asset to the extent of the capital gains. It may be noted that the amount of capital gains not appropriated towards purchase or construction of a new house within 3 years may be deposited in the Capital Gains Account Scheme of a public sector bank before the due date of filing of Income Tax Return. This amount should subsequently be used for purchase or construction of house.
Now the question arises whether the sale proceeds were invested in the mode prescribed under the act. The query says the applicant "wants to" but has not claimed "that the amount is invested already in such purchase".
Guest
(Expert) 30 January 2010
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soumitra basu
(Expert) 01 February 2010
Yes, if the applicant can invest Rs.12.00 Lacs as the payment of newly flat within 31st March, 2001, he will get the full deduction or proportionate deduction is available, as held by the Hon'ble Gauhati High Court and different other court.
