QUERY ON LONG TERM CAPITAL GAIN

I BOUGHT A FLAT IN AUGUST 2005 FOR 9 LACS. SOLD THIS FLAT IN MAY 2011 FOR 25 LACS. I HAVE ANOTHER PLOT OF LAND BOUGHT IN MAY 2009 ON WHICH I STARTED CONSTRUCTING MY OWN HOUSE FROM APRIL 2010.I HAVE ALREADY SPENT AROUND 15 LACS FROM MY SALARY ACCONT AND NOT FROM THE SALE PROCEEDS.AM I ELIGIBLE FOR LONG TERM CAPITAL GAIN RELIEF IN THIS CASE AS I HAD BOUGHT THE LAND IN 2009 ON WHICH I AM DOING THE CONSTRUCTION. THANKS &REGARDS VIPIN SINGH

asked Feb 03 '12 at 12:21 by vipin 1111

Please don't use all capital letters in future. If this happens again, your questions would be deleted.
(Feb 10 '12 at 15:25) pankaj

You can still avail tax exemption under section 54 if construction of house was not over before May 2011. Construction of new house should be completed before end of three years from date of sale of old flat (May 2014).

answered Feb 10 '12 at 15:24 by pankaj 5.2k320

link

@Vipin

Exemption u/s 54 is only granted if you have purchased the new property 1 year before or 2 years after selling the old property

In case of construction, exemption u/s 54 is available only if the contruction is done within 3 years of selling the old property and not before selling the old property

And thus, Exemption wont apply in your case.

answered Feb 04 '12 at 17:33 by CA Karan Batra 53216

link
-1

Know someone who can answer? Share a link to this question via email, twitter , or facebook
.

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×777
×326
×99
×26
×6

Asked: Feb 03 '12 at 12:21

Seen: 1,149 times

Last updated: Feb 10 '12 at 15:25