|QUERY:||I had sold 4 of vacant sites during the financial year and earned capital gains on each of them. Thereafter, I purchased a residential property for Rs. 1,50,00,000/- in the same financial year. My total long term capital gains was Rs. 36,72,000/-, on the sale of said sites. How to reflect in I. T. Return.|
|ANSWER:||From the query it is clear that land was long term capital asset and on sale of land (4 sites) long term capital gain of Rs. 36,72,000/- arose which was invested in residential house amounting to Rs. 1,50,00,000/-, hence no tax is payable.
In the return of income, you have to disclose under the head “capital gains”. You have to give working under “schedule CG” in schedules to the Return Form.
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||Capital gains- Investment in a residential house|
Opinion Of Eminent Legal Luminaries On Controversial Issues
Capital gains- Investment in a residential house
Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org