Comments on: How to Save Capital Gains Tax (LTCG) when Selling Land / Plot

By: Pankaj Batra

Pankaj Batra — Mon, 06 Sep 2010 06:30:52 +0000

@Rekha
I am sorry to say that, I am not a income tax professional or a CA. Actually I am an software professional and answer queries to share what I know.
I would request you to consult any experienced tax professional regarding your case.

By: Pankaj Batra

Pankaj Batra — Sun, 05 Sep 2010 17:51:50 +0000

@Francis
To avoid capital gains, only one purchase is allowed. If the whole capital gain is not invested into another property, tax has to be paid on balance amount.

By: rekha

rekha — Mon, 30 Aug 2010 20:36:07 +0000

Hello Pankaj, I read in Prema Shah case NRI was allowed to buy overseas property under Section 54.But if I need to take money overseas on sale of residential house in India,I need to produce a CA certificate to bank that tax has been paid on money intended to be remitted overseas My question is what will be the steps in case I want to buy overseas property under Section 54.Don’t say that I need to ask a professional.I have asked so many professionals.First they are ignorant about it, then get surprised on Prema Shah judgement.Then they start arguing as to how judge dared to have a different wave length then what they have and then they are deaf mute.I even had to say to them how unprofessional and unsatisfying this would be to them as a professional when client brings a copy of judgement and still they are not able to help him or her.They are not able to understand simple fact that Section 54 is silent about where property is bought and also the fact if resident Indian has ventured to have a living abroad ,he should not be penalized in not having a place to live in.I think you mentioned somewhere in site that case can be put to panel of experts.Hope you are able to show me how to proceed.

By: ranjeet kumar

ranjeet kumar — Mon, 23 Aug 2010 09:08:49 +0000

how to calculate IT? if bank intrest:1036 , long term capital gain:448841 short term capital gain :894 , income from rent 225000, and income from other source 347478, Advance tax paid 25000,lic 101508, medicliam 6990 and tds recd.25000

By: Francis

Francis — Mon, 23 Aug 2010 07:32:10 +0000

Dear Rajesh,
I purchased a residential plot in Bangalore in 1986 for Rs.1.5 lakhs. Today value of the plot is Rs.1.5 cr. I want to sell the said plot and with the money construct a house on another plot, 1/3 of this second plot is owned by me and 2/3 by my wife. The cost of construction of the house will be less than the sale consideration I will be getting for the 1st plot. Can I utilise the balance amount of the sale proceeds to purchase an apartment or land. Will I have pay capital gains tax?

By: Pankaj Batra

Pankaj Batra — Fri, 20 Aug 2010 16:10:17 +0000

@Vikram
Yes, you can invest as as co-owner for saving capital gains tax. But it should be match minimum to your ownership cost in property.

By: Vikram

Vikram — Fri, 20 Aug 2010 12:21:05 +0000

Dear Pankaj,

Can one invest the LTCG into buying a property joinly owned with one’s daughter, where-in that sum would cover only part of the cost of the new property and the daughter would have to take a home loan for the remaing?

Thanks.

By: Pankaj Batra

Pankaj Batra — Thu, 19 Aug 2010 15:21:46 +0000

@Mihir
Stamp duty and registration charges can be included in cost for capital gain calculations.
But brokerage, marketing cost, transfer fees can not be adjusted.

By: Mihir Shah

Mihir Shah — Thu, 19 Aug 2010 13:54:38 +0000

Before, I will present to you my case:

I am selling my property today at Rs. 900000/- which was purchased in year 1991-92 for 99000/- (Indexation Cost = Rs. 353,714/-) plus Stamp Duty & Registration Extra. I am buying new property for 2250000 (Agreement value) + Stamp Duty & Registration Charges of Rs. 115000/-, out of which, Rs.2000000/- would be paid from Bank loan and Rs. 360000/- as self contribution.

Now my queries is as follows:

1) Can I claim deduction for brokerage to agent (paid in cash), advertisement in newspapers (paid of cash), transfer fee (in cheque) of Rs. 1000/- paid to the society for my old flat in 1991-92?

2) If i am eligible for the claim no. 1, do I get indexation benefits for the same?

3) Can I claim brokerage to agent for sale of Old Flat and purchase of New Flat as Cost of Purchase of New Flat? Do I have to pay in Cheque only or i can also pay in Cash and take receipt for the same ?

4) I am also going to pay transfer charges for my old Flat too (transfer from my name to new owner name). Can i claim that too ?
What would it be treated as – Cost of Purchase for Old Flat or Cost of Purchase for New Flat ?

By: Mani

Mani — Wed, 04 Aug 2010 06:41:56 +0000

Hey Pankaj :

Thanks for your Reply . Your website and your replies are very use-full.
Thanks for taking out time in replying to my query

Regards
Mani