Capital Gain scheme

Hi,

- If you are not having invoices for the improvement work then it is better not to claim it otherwise it will be a matter of litigation. For labour work, we can assume payments were made in cash but for the materials you should carry proper invoices.

- LTCG would be Rs.1.85 Cr and tax would be Rs. 38.48 lacs

- Rs.38.48 lacs. You need to invest before 31.08.2019 to claim exemption.

- In case of ready to move in, 2 years from the date of transfer of the property i.e. May.2020 and in case of construction, it is 3 years i.e. May 2021.

Thanks

No sir you cant add if you dont have proper bill or supporting evidence.

As you have said that indexed cost of acquisition is 45 lakh your capital gain would be 1.85 crore and tax on same would be 20%. If you want to save this capital gain and you are going to invest in residential property in future then you need to invest this amount in capital gain scheme account before filing your return i.e. 31st august.

You need to invest the capital gain amount i.e. 1.85 crore.

Within 2 years from sale if you are going to purchase and within 3 years if you want to construct the house.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

1. If you have the invoices as proof then you must claim it as cost of improvement to the property but won't be advisable if you don't possess the invoices

2. Capital Gain would Rs. 1.85 Cr. You need to invest it before 31st August.

3. Capital Gain amount of Rs. 1.85 Cr.

4. Two years to purchase a new house property or 3 years to construct it.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

1. No, it is not advisable to add the cost of maintenance charges without proofs.

2 & 3.To calculate the long-term capital gains tax payable, the following formula is to be used:

Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:

Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Indexed cost of improvement = cost of improvement x cost inflation index of the year of transfer/cost inflation index of the year of improvement.

In your case, the capital gain amount would be Rs. 1.85 Cr i.e. (Rs 2.3 cr-.45 cr).

Yes, you need to deposit the capital gain amount of Rs 1.85 Cr in CGAS on or before 31st Aug.

4.2 Years for ready to move property and 3 years for under construction property .

1.The capital gain would be Rs. 1.04 cr i.e.( Rs 2.3 cr-45 lakh*280/100).

2. No, it is not sufficient proofs.

1. Yes, assumed Rs. 45 Lakhs as indexed cost. The Capital Gain would be Rs. 1.04 Cr.

2. Invoices would be required.

1. Indexation would amount to Rs. 1.26 cr and capital gain would be Rs.1.04 cr. Tax would be Rs.21.63 lacs.

2. Ledgers are internal records. 

You had told that indexation of property as per 2001 is 45 lakh so I thought you have applied indexation and after that it's 45 lakh.

Ok so now your capital gain would be 1.04 crore.

Is this your business asset or personal asset?

Have you made the payment by cheque?

Do you have any proof of payment.

Hi

1. If there's no proof, it is not advisable to consider the cost of improvements. Another option is to get a valuation done by a registered valuer for the construction costs valuation.

2. The investment can be made on a later date. But the amount has to be deposited in CGDS account before 31st August or date of filing whichever is earlier.

3. Capital gains would be around 1.04 CR considering 46 lacs as COA.

4. You may invest in a new property till May 2020 or construct a new property till May 2021.

1. Capital gains would be around 1.04 cr. 

2. In case of any query from the department, such expenses shall not be considered for unavailability of proofs/invoices.

We may assist you with the filing.

Hi

1. I assume you don't want joint ownership in future. 

You can invest your respective share of capital gains in your individual new properties. Not mandatory to invest jointly.

2. The tax liability would remain same i.e. 20% plus surcharge and cess. It would be taxable in the year of withdrawal from CGDS account.

- Yes, you should open join CGAS as the property was inherited.

- You both can invest individually. Capital gain will be calculated for each of you separately and you both can withdraw according to the capital gain. Presently, it is 0.52 lacs for each.

Dear Sir,

1. Yes, you should open a Joint Capital Gain account with your Brother as it was inherited property.

2.You need to pay LTCG@20% plus applicable surcharge and cess on capital gain amount. 

1 You can purchase individually and can open such account individually.

2 You need to pay the same tax as you claim as exempted earlier and you need to first pay tax and then withdraw.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

1. You can a joint account for Capital Gain. No requirement to purchase the property jointly for exemption.

2. Capital Gain earlier exempt would become taxable at 20% plus cess.

Dear Sir,

Yes, you can do it.

There will be no future liability for the same.

Don't worry.

It will raise issue if you do it according to point number 1 in your brothers account also because IT will ask from where did he receive such huge amount so its better if you can sort the thing with bank manager and find some other bank who opens this account.

Yes, you can do so.

Can't say why it happened but since it's a genuine case, there should not be any problem.

1. You can do so.

2. That would be fine.

1. Since you have a genuine problem, you can do so.

2. Yes.