We sold the residential building for Rs. 10.00 laks whereas the govt. value for the registy is Rs. 15.00 lacs. Now i want to purchase a house for Rs. 11.00 only. What about 5.00 lacs which is a notional gain. advice me
Re: Capital gain
by Tejas Chokshi on Aug 30, 2009 07:46 PM Permalink
Hi Mr. Dinesh, You have not mentioned the purchase price and year of purchase. I beleive you have sold the property in FY 2009-10. There is no question of notional gain. Income tax is never calculated on notional gain. Capital gain arises only when your selling price is more than the purchase price and after applying indexation ( ie if the purchase price is taken at the same level of the year of sale)and if the property is sold after holding the same for more than 3 years than long term capital gain would arise and if it is held for less than 3 years than short term capital arises. There are investment options available in case of long term capital gains like purchase of new house withing 1 year of the sale of the present property or if there is construction going on then it should be completed within 2 years. There is also an option of purchasing the property before 1 year of the sale. In your case, there is no tax on notional gain. Let me know your sale year and purchase price and purchase year so that exact amounts can be arrived. By CA Tejas Chokshi, FCA, M.com.
I have sold my flat acquired in 1999 reently and plan to invest the LTC gains in another bigger house. But the property I intend to purchase is a an apartment in a multi storied residential building being constructed by a builder. I will make payments right away, but the apartment will be ready earliest by March 2011, when it will become mine. There is a chance of this event being beyond 2 years of the sale.
Will this property acquisition be considered out right purchase (2 yrs period for re-investment) or construction (3 years period for re-investment). In the latter case I am comfortable.
Re: Construction / outright purchase of a house property
by Tejas Chokshi on Aug 30, 2009 07:48 PM Permalink
You can deposit the fund under special deposit account which can be opened in designated bank for this purpose like SBI, BOI, etc. You may go on drawing and make payments. By CA Tejas Chokshi
Re: Re: Construction / outright purchase of a house property
by Guest on Oct 14, 2009 05:08 PM Permalink
I bought a property in Dec 2002 for 2.4 cr and sold this month at 8.5 cr. the property is under owned by me and my wife. What will be capital gain based on indexation. I reckon we can buy two properties from the profit. For the rest what investment options we have so that we pay no tax. Thank you for your expert advise. i can
I had sold my house in Jan. 2007 and kept the money required for reinvestment in a Nationalised Bank. Subsequently, I booked a house in an upcoming Project. Owing to various reasons, this new Project has just been launched in Oct 2008 with a promise to give possession by Oct 2010. I have following doubts in my mind: 1) Even if I get out of turn allotment in March 2010, do I get the advantage of investments as per IT regulations, if not what are the penelties. 2) Should I make down payments or continue to make payments as per construction linked payments till Oct 2010. 3) On account of delays in completion of Project, am I responsible for the default. Shall feel obliged for clarification. Regards, Mahendra
I had sold my house in Jan. 2007 and kept the money required for reinvestment in a Nationalised Bank. Subsequently, I booked a house in an upcoming Project. Owing to various reasons, this new Project has just been launched in Oct 2008 with a promise to give possession by Oct 2010. I have following doubts in my mind: 1) Even if I get out of turn allotment in March 2010, do I get the advantage of investments as per IT regulations, if not what are the penelties. 2) Should I make down payments or continue to make payments as per construction linked payments till Oct 2010. 3) On account of delays in completion of Project, am I responsible for the default. Shall feel obliged for clarification. Regards, Mahendra
Some buildings have two agreements for the same flat. The falt is allocated two nos example 101 & 102. This is basically one flat with one kitchen, on the same floor. The only difference is that the builder had made two agreements initially for each flat for saving tax. Now if we such a flat, and two agreements are signed for that one flat, can consideration mentioned in both agreements setoff for capital gains?
I am expecting a capital gain of Rs. 9.0 Lacs after selling my residential plot.Can I immediately use this whole money(9 Lacs)for buying another residential plot in a different city and later on withen the stipulated period of 3 years if I construct a house on this land from my own money,will I be able to get complete tax exemption on the capilal gains of Rs. 9.0 Lacs?
Re: Capital gain
by SATYAPAL PAWAR on Jan 17, 2009 01:48 PM Permalink
i HAD PURCHASED A PLOT FROM HARYANA URBAN DEVELOPMENT AUTHORITY FOR RS.7 LACS(INDEXED VALUE AS ON 16.11.2006).i SOLD THIS IN 1S.17 LACS.ON 16.11.2006.i PURCHSED ANOTHER PLOT FORM HARYANA URBAN DEVELOPMENT AUTHORITY FOR RS.19 LACS.I HAVE SOLD THIS PLOT ON 2.1.2009 FOR RS 33 LACS I HAD TO SELL THIS PLOT SO AS TO MAKE PAMENTS FOR FLAT THAT I HAD BOUGHT FOR RS.37 LACS ON 6.6.2008.TILL NOW I HAVE PAID THREE INSTALMENTS TOTALING RS.11 LACS.WHILE FILING THE RETURN MY CA CLAIMED THE LONG TERM GAIN OF RS.10 LACSIN 2007-08.INSTEAD OF WRITING PLOT OF LAND FOR CONSTRUCTING HOUSE HE OVERSIGHTLY WROTE HOUSE.SECOND MISTAKE THAT WAS COMMITTED WAS THAT INSTEAD OF SHOWING 7 LACS HE SHOWED IT 2 LACS. WILL YOU PLEASE GUIDE ME HOW TO GO ABOUT THE TAX.
I am selling a vacant land in bangalore for rupees 25 lakhs. I want to know whether i have to invest the proceeds again in some land or building? Or can i invest it in some nationalised banks or public financial institutions for longer period. Do investing in these porfolios give me an exemptions on capital gains.
