Capital Gains Tax

If you do not construct the house by May, 2011 or sale the plot before that, the entire LTCG of 49 Lacs will be taxed in the year of sale of plot or latest in AY 2012-13.

If the plot is sold before Nov 2011, any capital gain arising out of this ale i.e. sale price minus 53.65 Lacs shall be taxed as Short term capital gain. If you sell this plot after Nov 2011, the capital gain arising shall be long term and you can avail exemption u/s 54F provided the same is available by that time in view of new Direct TAx Act which is likely to be applicable wef 1-4-2011.

Please be clear that if do not construct house on newly purchased house before May 2011, the entire exemption of Rs 49 Lacs is taxable as LTCG as stated above, irrespective of what you do with newly purchased plot.

Yes agreed with Mr Vineet

Isn't it possible to revise the return filed for A/Y 09-10 (If assessment has been done uptill now)

and then claim the deduction for purchase of house u/s 54 (house that you want to purchase now)

and do not mention anything about the plot you purchased...

for that purpose...you have to purchase the house before 2 years from the date of sale...

i.e. you have very less time...move fast and save tax.....

Mr Bansal, I think you are missing one point here that in such case as suggested by you, the funds should have been deposited in Capital Gains Account by due date of filing return for AY 2009-10.

As this has not happened, I wonder how your advise is executable.

oops....

sorry sir,I i'm really sorry i forgt..