Long term capital gains tax.
ASHOK KUMAR
(Querist) 19 August 2017
This query is : Open
I and my brother are partners in a firm.We want to sell the land in MIDC PUNE.We wish to know the rate of capital gains tax and whether we can buy another house or commercial space and also invest 50 lakhs each in Infra Bonds to take advantage of tax exemptions under the Capital Gains. Sine we are both senior citizens and aged 68 and 70 yrs respectively,and are retiring from the business,do we have any exemptions under the IT act.
Help in this matter will be highly appreciated at the earliest as this will be the only saving we will have for rest of our life.
Thanks
Ashok Kumar
Rajendra K Goyal
(Expert) 19 August 2017
All related documents need to be referred for calculation of capital gains.
Please discuss with local tax consultant or raise your query in CA Club India after providing all material facts.
R.K Nanda
(Expert) 19 August 2017
consult good tax lawyer.
Ms.Usha Kapoor
(Expert) 20 August 2017
Unto Rs.50lacs you can invest in NHAII Bonds or Rural Electrification bonds under section 54 EC to save on Long Term Capital Gains Tax. Or invest in one Residential House according to section 54 of IT Act 1961.. If the cost of the new house is more than capital gain entire long term capital Gain si exempt from tax.If it is less cost or new house is less than capital gain then the cost of the new house shall be allowed as exemption.. Or you can invest the entire amount available with you say Rs.100 lacs @ 50 lacs each in capital gains account scheme of any nationalized Bank for a period of 3 years entire amount is exempt from capital gain tax but for interest which is chargeable to tax.
Ms.Usha Kapoor
(Expert) 20 August 2017
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ASHOK KUMAR
(Querist) 20 August 2017
Dear Ms.Usha Kapoor
Thanks for your prompt reply.The property belongs to the partnership firm in which I and my brother are partners.Does the above stated rule apply to partners. I and my brother are partners in a firm.We want to sell the Industrial plot/land in MIDC(Maharastra Industrila Development Corporation) PUNE. We wish to know the rate of capital gains tax and whether we can buy another house or commercial space and also invest 50 lakhs each in Infra Bonds to take advantage of tax exemptions under the long term Capital Gains. Sine we are both senior citizens and aged 68 and 70 yrs respectively,and are retiring from the business,do we have any exemptions under the IT act. Help in this matter will be highly appreciated as this will be the only saving we will have.
Shall appreciate your reply.
Thanks and regards
Ashok Kumar
Ms.Usha Kapoor
(Expert) 22 August 2017
You can claim exemption for only one residential house but not commercial space or building..If you appreciate this answer please click like button.Section 54 doesn't apply to commdrcial buildings or commercial spaces to claim exemption on LTCGT.
ASHOK KUMAR
(Querist) 23 August 2017
Can each partner invest in a house and take advantage of the capital gains tax exemption. Can each partner invest 50 lakhs in infra bonds too?
Thanks in advance for a reply.
ASHOK KUMAR
(Querist) 23 August 2017
Can each partner invest in a house and take advantage of the capital gains tax exemption. Can each partner invest 50 lakhs in infra bonds too?
Thanks in advance for a reply.
