Help regarding Capital Gains Account

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  1. mehul747

    mehul747 New Member

    Dear Sir,
    I have sold my commercial property in Nov 2015 and calculated Long term capital gain. it comes to Rs.4.8lac.
    I have booked housing property of Rs.26lac in Sep2015 on joint name with my wife.We have paid jointly Rs.5.20 lac as down payment and balance loan has been taken from bank.
    I have kept balance amount of Rs.2.2lac in my Savings account and started paying EMI from the same.
    Do I need to open an Capital Gain Account in bank still?
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Dear @mehul747

    In case of sale of Commercial Property, capital gains exemption can be claimed under Section 54 which says that entire sale proceeds are to be reinvested in a Residential House.

    In case of sale of Residential Property, capital gains exemption can be claimed under Section 54F if the only the capital gains is reinvested in a Residential House.

    As you have sold a Commercial Property, the entire sale proceeds is to be reinvested.
     
  3. mehul747

    mehul747 New Member

    As my total sale proceed is 12.31lac I have paid Rs.2.6lac from this.

    I have taken loan for new property of Rs.20.80 in joint name.So now what to do in this case. Please guide me.
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Cost of New Residential Property = 20.80 + 2.60 L = 23.40L
    Sale Proceed of Old Property = 12.31L

    As the amount invested in the new property is more than the sale proceeds of the old property, therefore you can claim the capital gains exemption.
     
  5. mehul747

    mehul747 New Member

    Sir I have purchase property in March 2003 for Rs.2.55 lac inclusive expense.
    I have sold property in 2014 November for Rs.12.31lac. Now if I do not want invest in property and still want to save tax what amount of bond I need to purchase.
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    If you dont intent to invest in Real Estate, you can invest in Bonds under Section 54EC and claim capital gains exemption.

    You would only be required to reinvest the Capital Gains to claim exemption under Section 54EC for investment in Bonds.
     
  7. balakrishnan

    balakrishnan New Member

    YOU SAY YOU SOLD IN 2015 NOV. BUT TO DAY IS FEBRUARY 2015? hOW IS IT possible november can precede february?
     
  8. balakrishnan

    balakrishnan New Member

    gaurav is right!
     
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