Querry on Capital gain savings account

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  1. srsubramanian

    srsubramanian New Member

    I am a house wife and about 20 yrs before the land purchased say Rs. 200000/- by my husband on my name (single owner) being sold out by me currently for Rs. 63 lac, and using the same amount for booking of another apartment with in 4 months time it it compulsory to open capital gain savings account just for 3- 4 months.

    what will be the value of the capital gain that could be earned by applying capital gain inflation slab mentioned under income tax

    (The new apartment worth around Rs. 91 lac - this project would be ready only in 2018 - balance amount payable in installments - new apartment will be on joint name by myself and my daughter - daughter sharing 50% of the new apartment - sources of fun for my daughter is savings in the past years, rental income from her/her husband's apartments)

    In a years time my daughter even sell out her apartment, where the capital gain of her can be compensated with the amount paid for the apartment which are blocked by me and her jointly now as mentioned in para 1.
  2. rudrabose

    rudrabose Active Member

    1. If you reinvest the funds before filing the income tax return - you are not required to open Capital Gains Account.
    2. You and your daughter - both can claim Capital Gains Exemption.
  3. srsubramanian

    srsubramanian New Member

    land sale taking place in June 2015 as per registration sale deed say value 63 lacs pertaining to A/Y 2016-17
    Reinvestment of full LTCG into new apartment project for apartment say by July 2015 to Sept 2015 pertaining to A/Y 2016-17.
    The value of project comes to Rs.91 lacs on going project it is likely to be completed in Mar 2018. pertaining to A/Y 2018-19.

    When she need to filing the income tax return declaring this LTCG/investment. being house wife she has to file return for the first time she doesn't have any income.

    Already my wife name is mentioned as joint holder just for legal documentations in my property holdings.
    My daughter name mentioned in three property holding of her husband properties as joint holder just for legal documentations in my property holdings.

    under Rule 54F are they rightly legible for LTCG exemptions pls clarify correctly as
  4. rudrabose

    rudrabose Active Member

    To claim capital gains exemption from sale of land under section 54F - it is only allowed if the person does not own more than 1 house property.

    However, if the property sold is a residential house, exemption can be claimed under section 54 irrespective of the no. of houses.

    You may also refer this link which explains all the sections in detail - http://www.charteredclub.com/section-54/
  5. srsubramanian

    srsubramanian New Member

    In this case my wife LTCG is from land to sold in June 2015 to invest in the apartment, and my daughter LTCG apartment to be sold in 2-3 years time to invest in the same apartment for which my wife investing instantly, and by the time daughters apartment sold LTCG to be nullified to her investment made prior to sale of her apartment.
    In both the case
    when my wife needs to file her return, and
    when my daughter needs to file her return
    disclosing LTCG/investment
  6. rudrabose

    rudrabose Active Member

    This transaction would be mentioned in the return for the year in which the property has been sold.
  7. srsubramanian

    srsubramanian New Member

    Dear Rudrabose, thanks for interaction thru chartered club, which doing a good services.
    I appreciate your deep knowledge on the income tax matter.
    I would have interacted with you number of queries on LTCG/INVETMENT IN LIEU THERE ON OVER LAST 10 DAYS MAY BE.

    Would you be able to give me consolidating all my queries and clarifications you and your other member given in Tabulated formats for my record. This will help for ref when we come-across any issues in spite having filed correct returns and disclosing the LTCG/Investment transaction details correctly and honestly in our tax returns for my wife now since a land in her name to be sold in june 2015 and reinvested the money as it is into new appartment in a months time jointly with my daughter.

    by the way i am also a service tax refund matter where service tax paid on apartment pocessioned from builder/developer in much prior jun 2010, where service tax not applicable at all at that point of time. my service tax refund matter is in 2nd apple stage and the case is still pending unheard for more than three years now. I want have advise on this also hope you have no objections.
  8. rudrabose

    rudrabose Active Member

    I'm usually short of time so it would be difficult for me to do this.

    Maybe, you can try doing it yourself and you would be able to revise everything as well.

    In case of any specific query, feel free to ask
  9. srsubramanian

    srsubramanian New Member


    I WILL DRAFT APPLICATION FOR URGENT HEARING service tax refund matter is in 2nd apple stage and the case is still pending unheard for more than three years now.
  10. rudrabose

    rudrabose Active Member

    Good Luck for your hearing :)
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