Capital Gains Exemption on sale of Land: Section 54EC & 54F

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  1. krishnamurthy

    krishnamurthy New Member

    SIR,

    KINDLY CLARIFY MY DOUBTS.

    COST OF RESIDENTIAL LAND ACQUIRED AFTER INDEXATION: 6 LAKHS.
    COST OF IMPROVEMENTS AFTER INDEXATION : 1 LAKH.
    BROKERAGE GIVEN DURING THE TIME OF SALE : 3 LAKHS.

    TOTAL SALE CONSIDERATION : 150 LAKHS.
    I HAVE INVESTED 50 LAKHS IN 54EC BONDS.


    MY QUIRIES:

    1.WHAT IS THE CAPITAL GAIN?
    2.HOW MUCH I HAVE TO DEPOSIT IN CAPITAL GAIN ACCOUNT?

    PLEASE GIVE ME ACCURATE ANSWERS.

    THANKS.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Capital Gains = 150L - 6L - 1L - 3L = 140L

    You have to deposit 140L - 50L = 90L in the Capital Gains Account
     
  3. krishnamurthy

    krishnamurthy New Member

    Sir,

    Thank you sir.
    Sorry for the delayed reply.

    According to your calculation , 90 lakhs in capital gains account. Is Your reply suitable for the property sold is residential vacant land?
     
    Mohan Sharma likes this.
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    If the property sold is Land, then you can claim exemption under Section 54F and not Section 54.

    And under section 54F, to claim capital gains exemption, you have to reinvest the Sale proceeds and not the capital gains
     
  5. krishnamurthy

    krishnamurthy New Member

    Thank u Sir,

    Can I deduct the improvement cost like land filling, cost of construction of compound wall to protect the property [both the work was done during 1983-84] and 2% of sale consideration as brokerage / service charge [Thro' cheque payment] at the time of sale. So in your opinion I cannot claim the cost of the acquisition after indexation in this case. Am I correct?

    Sir,
    Once again Thank You Very Much for your valuable opinions.

    Yours,
    S. KRISHNAMURTHY.
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you can claim the expenses for construction of compound wall, brokerage expense etc.
     
  7. krishnamurthy

    krishnamurthy New Member

    Sir,

    Thanks a lot.
    God Bless You.
     
  8. krishnamurthy

    krishnamurthy New Member

    Sir, In my case, How much of money i have to deposit in the capital gain account and also the time limit to open the above said account ?

    Also, if i don't want to put the amount in the capital gain account, how much i have to pay tax for capital gain?

    Sorry for trouble.

    THANKS.
     
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