Long Term Gain in Property
modi kamal
(Querist) 05 December 2010
This query is : Resolved
Dear Expert Friends,
I recently sold my flat (which I had bought
in 1988)in November'2010.After cost indexation net long term capital gain is coming to Rs.1.80 Cr.Against this gain I wish to buy a property for my self for Rs.1.25 Cr.(As of now I do not any property in my name)
(1)Where to invest balance gain amount to avoid paying tax?(2)In balance sheet as on 31/03/2010,I have about 7 Lac share loss being carried forward.Can I adjust this amount against net long term property gain?(3)This year i.e from 01/04/2010 to 31/03/2011,I am also having long share income.Is it going to exempted as usual procedure?
Thanking you in advance for your kind comments.
A V Vishal
(Expert) 05 December 2010
(1)Where to invest balance gain amount to avoid paying tax?
Ans. According to S.54, the amount invested has to equal to or more than the capital gains, hence there is no way you can escape tax liability on the balance amount which is not invested in the modes suggested u/s.54.
(2)In balance sheet as on 31/03/2010,I have about 7 Lac share loss being carried forward.Can I adjust this amount against net long term property gain?
Ans. As per Common rules given above one can easily interpret that It can be done but correct answer is we can not adjust long term capital gain loss from sale of shares(STT paid) with LTCG from sale of flat .The reason is that as the Long term capital Gain from Shares(STT Paid) is exempted from tax so Long term capital Loss from Sale of shares ,Being exempted income u/s 10(38),can not be adjusted against any other Long Term Capital gain.So You can Not adjust Long term capital loss From sale of shares and mutual funds (STT paid) from LTCG from sale of flat.
M/s. Y-not legal services
(Expert) 05 December 2010
