Capital Gain Tax query

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  1. anil_266

    anil_266 New Member

    Dear All,

    I have booked a house in August 2015 and has done 20 % down payment and part payment I am doing by housing loan company as per stages of construction, presently only pre-EMI is being paid.
    Also I have an existing House which I am planning to sell in near future.
    Can I avail benefit of depositing sales proceeds in Capital gain FD, and after procession of house in June 2017, paying money from capital gain FD to the Housing Loan Company from whom loan is sanctioned for new house.
    Please guide.
  2. ZED

    ZED Well-Known Member

    This area is full of litigations.

    Some judgement have held that
    Booking a flat which is going to be constructed by the builder is a case of “construction” of the flat. If the flat is booked prior to the date of transfer of the old flat, deduction u/s 54 is not available. The date of receiving possession of the new flat cannot be regarded as the date of “purchase” of the new flat.

    I will need to know your jurisdiction because in some cases the courts have allowed the benefit of exemption.
    Each case will have to be seen as per facts and circumstances and the jurisdiction.

    You may contact me through my mail id for detailed discussion on cap gain queries.
  3. gaurav1705

    gaurav1705 New Member

    I sold my capital asset on 19.06.2014 and deposited full Long term
    capital gain amount in CGAS account with designated bank before due
    date u/s 139(1) and after 2 years from date of transfer i.e. now in
    3rd year, can I purchase land and construct house to avail exemption
    u/s 54F.
  4. ZED

    ZED Well-Known Member

    Your query has been answered on mail, kindly check.
  5. M S Jain

    M S Jain New Member

    Dear Sir,

    1) I had purchased a flat in Mumbai on 21st June2005 for a sum of 13 Lacs, and builder gave allotment letter of same date and receipts only. 95% amount was paid and 5% was to be paid on possession.

    2) The builder did not register the flat or did not even do agreement with us in 2005, until 2012. With several verbal attempts and later since 2010 we gave him notice through lawyer for registration of flat. The same flat was registered on : 15 Dec 2012, after lawyer’s notices. The flat was registered as per government reckoning value of Rs.32.5 Lacs. I have also paid M-VAT and Service Tax to the builder as per government resolution.

    3) The flat was sold on 10th March 2016 for a sum of Rs. 63 Lacs, and I intend to purchase another flat with the Long-Term capital gain amount. I feel in both cases (Allotment Letter Date & Agreement Date), I am eligible for Long Term Capital Gain. Kindly clarify on this point.

    4) Secondly, how much capital gain amount should I consider with below points

    a) Difference in Sale Price and Purchase Price. i.e. Actual Capital Gain (CG) Amount.

    b) How do I reduce the CG Amount by adding the indexation value. i.e. Should I calculate indexation value from Allotment Letter Date –June 2005 or from Agreement Date – Dec 2012.

    c) Also, should I consider reducing the M-VAT and Service Tax amount from CG Amount along with indexation value.

    5) How many years of time I have to purchase another flat to avail CG scheme.

    6) After putting the CG amount in CGAS account in a bank, should I consider to transfer the amount directly to builder or can I transfer the sum in my SB account, before paying to builder.
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