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Ram Mohan (Suptdg. Engineer(Civil))     09 January 2011

Capital gains Tax benefit

Hi,

I am planning to buy a flat on resale jointly with my spouse at New Mumbai.We are taking home loan for the same from a nationalised bank. With in 6 months from the date of purchase of the said flat, if my spouse sell her land property at her home town and utilize the money for repaying / pre closure of some portion of the home loan, can she take the capital gain tax excemption.Please clarify?



Learning

 10 Replies

A V Vishal (Advocate)     09 January 2011

Yes she qualifies for exemption u/s.54F of the Income Tax Act.

1 Like

Ram Mohan (Suptdg. Engineer(Civil))     10 January 2011

O k Sir.., but please note that she is taking and purchasing the flat prior to selling of her land property.in that case also is she eligible for for tax benifit?

CA SANDEEP BANSAL (PARTNER)     10 January 2011

HI RAM ,

YES SHE IS STILL ELIGIBLE FOR EXEMPTION U/S 54( F) OF INCOME TAX ACT AS SECTION SAYS BEFORE AND AFTER  1 YEAR OF SUCH SALE

1 Like

Ram Mohan (Suptdg. Engineer(Civil))     10 January 2011

Thanks a lot

modi kamal (business)     11 January 2011

I sold my flat in Dec'2010 which I bought in 1988.My LTCG is Rs.1.83 Cr after deducting indexation cost.Against this net gain,I will be buying a flat worth 70-80 lakh.
Now my query is, can I put 50 L in Govt. Bonds such as REC or NHAI in this financial year i.e before March'2011 and put another 50 L in April ;2011? thus claiming rebate of Rs. 1 Cr.As per I.T Act,maximum amount can be invested is Rs. 50 L per FINANCIAL YEAR.Even my CA is not sure of the answer.I am getting mixed response from others.

A V Vishal (Advocate)     12 January 2011

Mr Modi,

You can go ahead with your plans.

1 Like

CA SANDEEP BANSAL (PARTNER)     12 January 2011

MR MODI U CAN INVEST AS PER UR PLAN

1 Like

modi kamal (business)     12 January 2011

Thanks to all of you for kind & favorable advice.I am going ahead with as suggested by you.

 

By the which is better? REC or NHAI bonds?

A V Vishal (Advocate)     12 January 2011

Both are good and earn the same ROI, the choice is yours

1 Like

modi kamal (business)     12 January 2011

Do they start giving interest from the day cheq is debited in my bank ?


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