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Srikant (Scientist)     15 February 2012

Capital gains from two assets

Can capital gains arising from the sale of two different assets (land + apartment) be clubbed together towards the purchase of a single asset (apartment)?





 4 Replies

YOGESHWAR. (ADVOCATE HIGH COURT-criminal /civil     15 February 2012

IT works on annual basis and not for each basis.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     15 February 2012

Transferability is an essential characteristic feature of capital assets. Due to transfer of capital asset from one person to another, the value increases. The enhancement of value depends upon the period, locality, and other factors in the country. Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax undere the head ' Capital gains'. and shall be deemed to be the income of the previous year in which the transfer took place.

k.chandrasekharan (advocate)     18 February 2012

Any number of assets can be trasferred during a financial year with resultant long term capital gains. All these captital gains can be consolidated and investement can be done in an exempted capital asset, viz. purchase of a built residential house (apartment included) to claim exemption from capital gains tax as admissible. Care should be taken about time norms, namely six months from the date of transfer to either utilise the capital gains for such investment or deposit into a capital gains account with eligible bank, for utilisation later on, that is two years for purchase of a completely built residential house/apartment or within three years for buying a site and construction of a residential house.

In case any of the capital assets (not being financial assets) transferred results in capital loss, such loss can be adjusted to capital gains from other transferred capital assets and the net capital gains reckoned for purpose of such investment.

Vineet (Director)     21 February 2012

Yes, you can. However the exemption shall be under different sections i.e. 54 and 54F. For seeking exemption of capital gain arising on sale of land, the entire sale consideration has to be invested over and above the capital gain arising from sale of flat. I presume both are long term capital assets.

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