Srihari
16
Dear sir,
I have sold a plot and got a chains of 90L. Since I owe two residential flats and not invented in bonds, I will have to pay the tax on the gains. Now I intend to sell one of the residential flat(which is more than three years old) and expecting a gain of 30L. Do i need to pay the tax on this gain of 30L or I can invest in buying another residential so that I don't have to pay the gain gains. Please clarify.
If you sell a residential flat after three years of ownership, you can save income tax by buying/constructing another residential house property u/s 54. As your gain on flat is 30 lakh, you can buy/construct another property for amount more than 30 lakh, to save tax fully.
Thanks for the clarification. Does this mean, since i have already sold the plot in July 2011, should i have to make sure I sell the flat before 31 march 2012 to save the whole income tax arising from plot and flat sale both. Please clarify as aim not aware of this benefit. Your quick response will make me to act immediately. Regards
Sorry, another question. By when I should put the sale consideration into capital gain account scheme as i have currently put this amount in FD for shorter period. Second, by when I should invest in purchasing another residential property. I mean what is the time frame. Please clarify
Hi Pankaj,
I am confused with your following reply and what is mentioned in the article:
"One more interesting point here is taxation of gains on plot sale after you sell a residential flat. Once you sell one of your flat, your owned residential property count becomes one and you are eligible to save tax u/s 54F for gains from plot sale."
But in your article you mentioned that exemption is not there - If the assessee owns more than one residential house, other than the new asset, on the date of transfer of the original asset.So even if he sells the flat later, he still owned the flat when he sold the land, so how would he get the exemption.
I am referring to the following link and the following text in that link. http://www.pankajbatra.com/india/how-to-save-capital-gains-tax-ltcg-when-selling-land-plot/#ixzz1j52Avf69
"However, the capital gains exemption enumerated in (a) & (b) above is subject to the some conditions. The benefits as discussed shall not be available if:
If the assessee owns more than one residential house, other than the new asset, on the date of transfer of the original asset."
