Capital Gain query

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  1. sandesh kamat

    sandesh kamat New Member

    Dear Sir
    I purchased a flat in jan 2008 for Rs 8 lakhs & have sold the flat in 2014 for Rs 36 lakhs. As per indexing the capital gain arising is around Rs 22 Lakhs.
    I want to construct a residential apartment on self owned NA plot.
    I want to keep & register a flat in my name whose area would be 1300 sq ft
    & considering the cost of construction @ 1500 per sq ft which would be around Rs 20 lakhs.
    My question is
    1) Can I save capital gain in such manner because I have invested in residential property because as I understand one can also save capital gain from constructing a house in this case its an apartment .
    2) How can I show the cost of construction
    I request you to kindly give ur valuable advice.
    Sandesh kamat
  2. jagmohan singh

    jagmohan singh New Member

    In ur case there would be a Long Term Capital Gain(LTCG).
    You would be saving capital gain Tax if u construct the residential house within three years from the date of sale.For that you will have to invest the
    amount in construction before the due date of furnishing the ITR for the relevant year.In case it is not invested before the due date then it would be
    deposited in separate branch account, other than rural branch,of public sector bank.There are 2 types of accounts one is saving and other is fixed
    account bank.The formalities are different for both accounts for withdrawing and utilising the unused amount.

    Further exemtion in respect of entire amount of capital gain is allowed equal to amount invested otherwise the balance amount is taxable.

    SUKSHAM ARORA New Member

  4. nehal koradia

    nehal koradia New Member

    what if the full value recived not invested in purchasing another property?
  5. sandesh kamat

    sandesh kamat New Member

    Thanks Mr Singh for your advise. As you see here iam not constructing an independent house I will be constructing a residential apartment & keep one flat for me by registering it .I will complete transcation by may 2014 so I can utilize the proceeds till july 2014 . & how can I show what amount is spend on constructing my flat?
  6. Adi K

    Adi K New Member

    i have a similar issue but with slight variation.
    Plot of land gifted by parents, for both self and wife, is being given away for apartments development where the developer is giving us 50% share of flats on 03 floors. I understand we both can retain one each flat without paying capital gain on the new apartment when completed.
    I would like to ask the form here can we get to retain one each house in new apartment, if we already are jointly owning another house which was purchased from my earnings? Since the rule says only one residential house is allowed for purpose of capital gains, does the rule apply same way to gifted plot being converted into houses through development ?
  7. dr.j.b.sinha

    dr.j.b.sinha New Member

    ,i puchased 1 lac units ( Rs.10,00,000) of sbi sdf debt fund in april2013 and got Rs.10,81,704/- with interest in april 2014. what amount of capital gains tax is to be paid if i opt for cost inflation index.
  8. dr.j.b.sinha

    dr.j.b.sinha New Member

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