Capital Gain Tax _ Urgent Clarification

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  1. aug5gauravsharma

    aug5gauravsharma New Member

    Hi ,
    Have two critical queries . Would like you to help me with urgent answer in the following regard :-
    First One:I am planning to sell a house bought through DDA however i am not clear that which date would be considered for computing the 3 yrs for identifying the type of Capital Gain ( Short or Long ) . Gone through various forums but mixed replies are coming . The Milestones are mentioned as under :-
    1. DDA draw in April 2011.
    2. Allotment letter issued to me w.r.t initial payment of 1.5 Lacs on Oct 2011.
    3. Remaining payment submitted in Dec 2011 & well within the stipulated period.
    4. Final site possession offered on May 2012 .
    5. Conveyence Deed for the same got executed in Aug 2012 .
    As per Initial checks , I came to know about a Circular No: 471 Issued on 15th March 1986 , where it is being mentioned that in case of DDA flats allotment letter issuance date ( i think in this case it wud be Oct 2011 ) is most important & 36 months shall be calculated from there on but i am totally confused .
    Please guide me on that , as i am not able to breakthough the exact date & hence answer .
    Second One:
    This property has to be sold as Under Value as Circle rate is much more than the prevailing value . Upon Reading it was found that basis Section 50(C) , Section 56 that " If a property is sold less than the Circle rate . it is assumed that same is sold on Circle rate as the minimum rate irrespective of the actual Sales value " . Hence in this case the capital gain would be calculated on Circle rate minus Earlier Bought rate , However somewhere it is being mentioned that if we can tell the assessing officer that current rate is less than circle rate then Tax can be calculated on Actual Rate not on Circle rate . I am quite confused with this also . Request your urgent clarification to how to get the same done .
    I would be highly thankful to you in this regard . Waiting for an urgent & accurate answer so that mine query is solved fully .
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear Sir

    Your interpretation in both the cases is correct i.e.
    1. Date of Acquisition would be considered as Oct 2011 as that is the date on which the flat was officially allotted to you in writing.
    2. If Selling price is less than the Circle Rate, then the Circle rate would be deemed to be the Selling Price.
    If you can convince the assessing officer that the Market Selling price is lower than the circle rate - then the actual sale price would be considered as the selling price.
     
  3. aug5gauravsharma

    aug5gauravsharma New Member

    I got a little bit what you explained however still some queries :-
    1. How to get 100% sure about oct 2011 as the date to be considered for calculating capital gain. I am asking bcoz i am just on the verge of selling of the property. If the date is considered to be as per may 2012 ( date of physical possession ) then i will come in STCG. Please confirm about that once again. Also if you can comment on circular which i mentioned.
    2. Secondly where to get in touch with assessing officier. Wud it be before sales or after sales . Also which assessing officier to be contacted ?
    Where the property is or Where the income tax is being submitted?
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    You got a right in that asset in Oct 2011 itself. Although, it was handed over to you in May 2012 but it was your asset from 2011 itself.

    Therefore, it is a long term capital gain.
     
  5. ashutosh misra

    ashutosh misra New Member

    sale consideration of plot=1.08 carore
    net capital gain=82 lakhs
    purchase of residential house= 64 lakhs
    investment in bond under section 54EC= 20 lakhs
    net capital gain tax=??
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    Capital Gains Tax = 82 Lakhs
    (Less) Exemption u/s 54 for purchase of Residential Property = 64 Lakhs
    (Less) Exemption u/s 54EC for purchase of Bonds = 20 Lakhs
    Net Taxable Capital Gain = Nil

    Capital Gains Tax = Nil
     
  7. aug5gauravsharma

    aug5gauravsharma New Member

    Dear Sir,
    Dear Sir,
    How about the second question . Can u please answer that also .
    It is regarding where & how we have to meet the assessing officier to tell that actual cost of selling is less than the circle rate hence actual cost shall be considered for calculating capital gain not circle rate cost . It seems very difficult to get it convinced by an individual so what's the process for that.
     
  8. aug5gauravsharma

    aug5gauravsharma New Member

    Hi Sir ,
    I am still awaiting your revert on Capital GAIN as i asked few days back .Also you have mentioned that Capital Gain ( Long Term ) can be claimed irrespective of the number of houses hold however as per 2014 Budeget it is being mentioned that LTCG exemption can only be taken if the seller is holding only one house ; Kindly confirm . Lot of confusions ..
     
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