cpc

capital gain status


Dear Boarder 

I  Bought a flat in 2000 on SFS basis and  took possession in 2004  total buying cost 10 lac.  And sold it  in 2011  for  22 lac. Now  aginst  this sale , am buying new flat  for 35 lac (Nov2011)  and  want to register it in the name of my wife to  save on  stamp duty.

Pl help me  to understand....am  still subjected to to pay capital gain tax , if  the property is registered in  the name of  my wife, through the sale proceeds of  falt (registered  in my name)?

I shall apprecaite  if   you can  throw light on this , as next week  I  have to  regiter  this flat  at DELHI.

Regards

Bharat M K

 

ginst this another flat  

 
Reply   
 

Dear, You can get the new flat registered in the joint names of yourself and your wife. Your name should appear first in the registered sale deed.Still you can save on stamp duty cost and Capital Gain is exempted by doing such a transaction. 

 
Reply   
 



Dear Rajpal ji .....joint registration  is  having other angle.  In case,   we buy another flat  on either's name. Then  it   shall be subjected to the INCOME....(with present rules on second house).  So ,  my Q is   under exisint  IT law on Capital gain, If I   reigster   this flat  in  the name of  Wife,  then am  i exempted  from   the LT  capital  gain ?  (Since   sales  proceedings  are invested in  the property)

Regards

Bharat.

 
Reply   
 
Scientist/Engineer

The simple answer is "No".  To save on capital gains tax the purchase has to be in your name. Joint name with wife is permitted.

 
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NO you can not buy in your wife's name to claim the exemption under capital gain,If the flat was acquired by your own funds.

 
Reply   
 

I thanks our  esteemed  member for  sharing the information on  this board. On thing  is  clear ,  to over come  capital gain,  I  have to  jointly  register  the property in  my name too. 

Now    I  have other side of  this question ...!  .....

Q : Can  this capital gain of  (post indexing gain 3 lac) can  be offset  against  the losses  in   capital market ?---- Reference is  that ,  I have sold some of  my stock worth 2 lac  to  half the prices(1 lac),  to  garner funds   for purchase of this  new flat.   These stocks(worth Rs 2 lac)  were purchased in 2007 were liquidated  in 2011 (after 4 years)  at 50% capital loss.  

Pl advice whether  this capital loss  in  stock mkt  of  Rs 1.0 lac, can be booked  against  the capital gain on the sold flat  ?

Regards

 

  

 
Reply   
 

Long term capital loss from shares can not be adjusted .Had there been long term gain from shares it would have been exempt from tax.

'LONG TERM CAPITAL LOSS WHERE THE LONG TERM CAPITAL GAIN IS EXEMPT HAS NO VALUE.'

There will be no tax benifit.

 
Reply   
 
Scientist/Engineer

I have a question to Mr.Sunil Rajpal:

Long term capital gain in sale of equities is exempted only if transaction tax is paid. What if someone makes a loss in off-market transaction, where no transaction tax has not been paid? Any off-market capital gain on shares is taxable.

This question is not on behalf of Mr. Bharat.

 
Reply   
 

 My sincere thansk  to the member for  clarifying  Q on  capital gain.  Just extending  the  discussion  for   base year of  calcuation of  Capital gain on Property.

 Question:  I   was allotted the sold (in 2011)society flat in   August 2000 , and  paid  the periodical installments (half yearly) and  was offered possession in 2004 on completion.  Pl indicate which date I shoud take for  indexing  purpose. Is it 2000 or on perodic EMI  deposited or  possession date ?

Regads

 
Reply   
 

 Dear Dr.MPS Ramani,

Since this a long term capital loss from sale of shares. We must remember that the benefit of set-off would not available  if the shares are sold  on the stock exchange.Off market sale with a purchaser at the current market price is allowed and we can still claim the benefit of the loss in the year the shares are sold. But we should be carefull that payment and delivery are simultaneous (which is a requirement for a spot transaction, which is permitted outside the stock exchanges), and that the transaction is carried out at the current market price.

 
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