Real Estate Forum on Capital Gain Tax

Latest Answer: Hi, If the amount is not utilised within three years for purchasing or constructing a house, it will be taxable after the expiry of three years from the date of sale. In your case, if the amount is not utilised within three years, then it will be taxable at 20% in 2019-20, along with 4% cess. No penalty will be levied.

Latest Answer: Hi Sudhish, To make you clear, i am giving you an example. Suppose an individual has a long-term asset (other than residential property) & he sells it on 1st April, 2013 for Rs. 1500000. Suppose, the indexed cost of the asset is Rs. 800000 then Long Term Capital Gain will be = 1500000 – 800000 = Rs. 700000 In order to get full exemption u/s 54 F he will have to invest the full sale consideration of Rs 1500000 in construction of a house property before 31st March, 2016 or purchase a new residential house property before 31st March, 2015. If he has already purchased a residential house property on or after 1st April , 2012 then the amount invested can be adjusted with the purchase price of this property.

Latest Answer: This method will create complication for valuation of property as well for computation of capital gain tax. In spite of the fact that the govt. may receive additional revenue at the beginning by way of an increase stamp duty. But it will dampen the number of transaction in the log run.

Latest Answer: There are two types of accounts in the Capital Gain Account Scheme provision. The first account is just like a savings deposit account. You can withdraw from the account from time to time subject to other conditions of the scheme. This account is suitable for people who are planning to construct a house over a period of time. The amount withdrawn should be used for the purpose of purchase or construction of a house. It should be used for the purpose within 60 days of the withdrawal. Any unused amount should be deposited back in the same account.