Long term capital gain
abhimanyu
(Querist) 30 April 2018
This query is : Resolved
A sold a residential property IN 2017-18..THE PROCEEDS OF RESIDENTIAL PROPERTY INCLUDING CAPITAL GAIN WAS RS. 35 LAKH. THIS AMOUNT OF RS. 35 LAKH HAS BEEN UTILISED IN BUYING A PLOT WORTH RS. 50 LAKH (BY INVESTING RS. 15 LAKH FROM OWN POCKET. ) in 2017-18 itself that is BEFORE TIME FOR DEPOSIT IN 'Capital gains account scheme 1988" CAME TO END(which date is 31.7.2018).. NOW FOR CONSTRUCTION EXTRA AMOUNT WILL BE REQUIRED WHICH WILL ALSO BE SPENT FROM POCKET, The construction on the plot will be completed within 3 years.of selling the residential property.
Please advise.
1. WHETHER STILL CAPITAL GAIN IS REQUIRED TO BE DEPOSITED IN 1988 SCHEME
2. WHETHER CAPITAL GAIN WILL BE EXEMPT IN THIS CASE IF CONSTRUCTION IS COMPLETED WITHIN 3 YEARS
3. In case reply to query is "Yes" and AS CONSTRUCTION IS YET TO TAKE PLACE HOW PURCHASE OF PLOT WILL BE SHOWN IN INCOME TAX RETURN FOR THE YEAR 2017-18 TO CLAIM EXEMPTION AS THERE IS NO SUCH COLUMN.IN THE ITR FO
KISHAN DUTT KALASKAR
(Expert) 30 April 2018
Dear Sir,
Please get concrete and definite advice from tax practitioners.
abhimanyu
(Querist) 30 April 2018
There may be tax practitioners being Experts on this site also, who are requested to render advice.
abhimanyu
(Querist) 30 April 2018
A sold a residential property IN 2017-18..THE PROCEEDS OF RESIDENTIAL PROPERTY INCLUDING CAPITAL GAIN WAS RS. 35 LAKH. THIS AMOUNT OF RS. 35 LAKH HAS BEEN UTILISED IN BUYING A PLOT WORTH RS. 50 LAKH (BY INVESTING RS. 15 LAKH FROM OWN POCKET. ) in 2017-18 itself that is BEFORE TIME FOR DEPOSIT IN 'Capital gains account scheme 1988" CAME TO END(which date is 31.7.2018).. NOW FOR CONSTRUCTION EXTRA AMOUNT WILL BE REQUIRED WHICH WILL ALSO BE SPENT FROM POCKET, The construction on the plot will be completed within 3 years.of selling the residential property.
Please advise.
1. WHETHER STILL CAPITAL GAIN IS REQUIRED TO BE DEPOSITED IN 1988 SCHEME
2. WHETHER CAPITAL GAIN WILL BE EXEMPT IN THIS CASE IF CONSTRUCTION IS COMPLETED WITHIN 3 YEARS
3. In case reply to query is "Yes" and AS CONSTRUCTION IS YET TO TAKE PLACE HOW PURCHASE OF PLOT WILL BE SHOWN IN INCOME TAX RETURN FOR THE YEAR 2017-18 TO CLAIM EXEMPTION AS THERE IS NO SUCH COLUMN.IN THE ITR
Ms.Usha Kapoor
(Expert) 30 April 2018
Siince cost of the house is more than capital gain you need not pay any long term capital gain tax.
abhimanyu
(Querist) 30 April 2018
Madam Usha, you have said "Cost of the House is more than..." which house you have referred here.
abhimanyu
(Querist) 30 April 2018
As my query has been treated as RESOLVED by two experts and other experts may not understand the query properly, as such same is reiterated for te convenience of other experts, if any
A sold a residential property IN 2017-18..THE PROCEEDS OF RESIDENTIAL PROPERTY INCLUDING CAPITAL GAIN WAS RS. 35 LAKH. THIS AMOUNT OF RS. 35 LAKH HAS BEEN UTILISED IN BUYING A PLOT WORTH RS. 50 LAKH (BY INVESTING RS. 15 LAKH FROM OWN POCKET. ) in 2017-18 itself that is BEFORE TIME FOR DEPOSIT IN 'Capital gains account scheme 1988" CAME TO END(which date is 31.7.2018).. NOW FOR CONSTRUCTION EXTRA AMOUNT WILL BE REQUIRED WHICH WILL ALSO BE SPENT FROM POCKET, The construction on the plot will be completed within 3 years.of selling the residential property.
Please advise.
1. WHETHER STILL CAPITAL GAIN IS REQUIRED TO BE DEPOSITED IN 1988 SCHEME
2. WHETHER CAPITAL GAIN WILL BE EXEMPT IN THIS CASE IF CONSTRUCTION IS COMPLETED WITHIN 3 YEARS
3. In case reply to query is "Yes" and AS CONSTRUCTION IS YET TO TAKE PLACE HOW PURCHASE OF PLOT WILL BE SHOWN IN INCOME TAX RETURN FOR THE YEAR 2017-18 TO CLAIM EXEMPTION AS THERE IS NO SUCH COLUMN.IN THE ITR
Ms.Usha Kapoor
(Expert) 01 May 2018
Sorry! Instead of Saying plot I said house. On That plot also you will build a house further rising the cost of the house. Sio. If cost of the new house is much more than capital gain generated you need not pay any long term capital gain I meant.
abhimanyu
(Querist) 01 May 2018
Thanks Madam.
Please reply queries number 1 and 3 also, very are more important.
Ms.Usha Kapoor
(Expert) 02 May 2018
for answering Q1 you need month of purchase of original house and also MONTH OF SALE OF ORIGINAL HOUSE.Yes if construction is completed within 3 years capital gain will be exempted.
Ms.Usha Kapoor
(Expert) 02 May 2018
Regarding purchase of flat showing in IT Return you check with Assessment Officer only.
