capital gain exemption under section 54 F

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1) Mr A has sold his inherited jwellery on 18th December 2010. The Capital Gain LTCG is Rs RS 13 Lakhs 2) He Wants to buy Residential House for Rs 25 Lakhs ( Flat ) The Flat is under construction and will be ready by November 2013 3) The Builder will give Sale Agreement with Stamp duty and registration in April 2012 but He is giving Agreement to sale on 100 Rs Stamp Paper alongwith allotment letter 4) He wants A to pay Rs 25 Lakhs as an initial amount

Query 1 The Capital Gain to be invested in Residential property Within 6 months of sale of inherited jwellery i.e 15-06-2011 or before filing of the return ??? 2 Agreement to sale and allotment letter will be sufficient to prove Investment in Residential House ????? 3 He has paid Rs 25 lahs before 31st july if e wouldnt have been paid should be has to deposit capital gain amount in Capital Gain Deposit scheme witin what period and when

jewellery-sale residential-house capital-gains income-tax
1 Answers
  1. In case of sale of jewellery, whole amount of consideration needs to be invested (not just capital gains) into new residential property.
  2. Possession/Registration must be done for new flat before end of two years from sale of asset.
  3. If new property is not bought before filing return, amount should be invested into capital gain account scheme.
  4. Agreement to sale and payment receipt to builder/seller will be considered as proof for investment in residential house, but registration should be done before end of two years.
  5. If there is amount left from asset sale consideration and what is paid to builder/seller, then it has to be invested into capital gain account scheme before filing return.
  6. He cannot own more than one residential property at the time of buying new flat. Also cannot sell this new flat for next three years and cannot buy any other residential property in next three years.
Pankaj Batra5212
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