LONG TERM CAPITAL GAIN - SALE OF LAND - INVESTED INTO APPARTMENT

Share
Share This Thread
  1. rudrabose

    rudrabose Active Member

    1. The cases cited above are all of state level authorities and state level authorities and only apply in that state only. Infact, they are many a times challanged even in that state as well
    2. 90% of the CA's are of the opinion that the capital gains should be reinvested on own name only and not on the name of son/daughter.
    3. I tried reading the extra long reply but couldnt analyse the reason for scrutiny. Would be great if you could again mention in the reason in a very summarised manner. (PS: Exemption under Section 54F is only allowed if the assessee does not own more than 1 residential house property and the same has been mentioned above as well. Any other reason for scrutiny?)
     
  2. srsubramanian

    srsubramanian New Member

    Dear Sri Rudrabose for your analyse the reason for scrutiny, herewith again mention in the reason in a very summarised manner.

    for all ?s as marked pls advise.

    HUSBAND & WIFE, daughter PARTY – A


    HAVING ONLY ONE DUAGHTER GOT HER MARRIERD

    HUSBBAND AGED 66 YRS SR.CITIZEN RETIRED

    WIFE AGED 62 YRS HOUSE WIFE

    HAVING ONLY ONE PROPERTY IN JOINT NAME of THREE HUSBAND/WIFE/DAUGHTER- MADE OUT OWN EARNINGS – NO LOAN TAKEN NOR CLAIMED ANY INCOME TAX RELIEF EXEMTIONS NOR SET OFF OF TAX – OWN OCCUPIED


    PROPERTY INVESTED THRU HUSBAND; PAST EARNING RETIRMENTS BENEFITS FUNDS/ PF SAVINGS ETC


    JOINT HOLDING IN PROPERTY JUST DOCUMENTS PUPOSES AND EASY SUCESSION ON PROPERTY EITER OR SURVEYERS DEATH



    HUSBAND purchased a piece of land in the name of wife during the financial year 2000-01 for Rs. 1.20 lac.

    in our case the land purchased prior to 2001, and sale deed entered in 2001 for 1,20,000, and after wards also till 2014 property tax paid, development charges paid all put together another 1,00,000 spent on the land would be adjusted cost price for improvement and tax paid etc.,

    cost of inflation index 406 for 2000-01

    cost of inflation index 1024 for 2015-16

    Using cost inflation index, the capital gains calculated in the following manner :
    1,20,000 X 1024 / 426 = Rs. 302660


    1,00,000 X 1024 / 426 = Rs. 252217

    The long-term capital gains as a result of cost inflation index adjustment would be as under :
    Rs. 63,00,000 – less 3,02,660 - less 2,52,217 =


    Rs. 57,45,123.00

    As the entire sum sale proceeds reinvested in the new apartment, 6300000, which is more than Long-term capital gain = Rs. 5745123/-


    Will there be any income tax levy on the total Long-term capital gain Rs. 57, 45,123.00 ?


    whether are we allowed put the total Adjusted cost price as per Cost Inflation Index Rs. 3,02,660 + Rs. 2,52,217/- into Sr. citizen fixed deposits in banks, non banking company and earn yearly interest for our survival. ?

    Is it necessary to open LTCG savings account thru bank for just 45 days and then payoff the entire money for new apartment. ?


    New apartment cost comes to Rs.108 lacs.

    Less adj land sale LTCG Rs. 54 Las


    Remaining balance part of Rs. 54 lacs would be LTCG from post sale of apartment of daughter/son-in law in years time


    Can there be two diff capital gainers in one property propped to invest jointly ?



    WHETHER SALE OF LAND PROPERTY LTCG CAN BE REINVESTED APPARTMENT ?


    DAUGHTER & SON-IN-LAW – PARTY - B

    DAUGHTER > HOUSE WIFE SON-IN-LAW SALARY HIGH SLAB TAX PAYER



    HAVING THREE APPARTMENTS MADE OUT OWN EARNINGS – NO LOAN TAKEN NOR CLAIMED ANY INCOME TAX RELIEF EXEMTIONS NOR SET OFF OF TAX – ALL RENTAL INCOMES DECLARED IN THE RETUNRS FOR TWO APPARTMENTS – AND OWN OCCUPIED IN ONE APPARTMETNT


    PROPERTY INVESTED THRU SON-IN LAWS EARNING RETIRMENTS BENEFITS FUNDS/ PF SAVINGS ETC


    JOINT HOLDING IN PROPERTY JUST DOCUMENTS PUPOSES AND EASY SUCESSION ON PROPERTY EITER OR SURVEYERS DEATH




    IT IS LIKELY BE PALNEED FOR MAKING SALE OF ONE RES PROPERTY 1 OUT OF 3 AND THE ltcg TO BE INVESTED INTO NEW PROPERTY WITH JOINT HOLDING FATHER / MOTHER OF WIFE SIDE



     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Set off capital loss with long term capital gains from sale house Income Tax Yesterday at 10:45 AM
Long term capital gains on sale of property Income Tax Aug 27, 2017
Long term capital gains on equity shares Income Tax Aug 17, 2017
Equity trading(Short&long term), F&O trading Income Tax Jul 7, 2017
Long term capital gain tax on sale of industrial property Income Tax Apr 17, 2017