Monday, 3 November 2014

Six Mistakes You Can’t Afford To Do If You Want Exemption u/s 54F From Long term Capital Gains !


1. Invest FULL amount of consideration which you received from sale of assets. Only expense related to transfer of asset like lawyers or registration etc can be deducted.For example , you received Rs 20,00,000 as sales consideration of an asset other the residential house which cost you Rs 10,00,0000, and you spent Rs 1,00,000 as transfer expense, you will have to invest Rs 19,00,000 even if the actual gain is Rs 10,00,000

2.Do not purchase a house property within two years from the transfer of asset which was sold. If you do that , the year in which you purchased, the exempted portion of gains will be taxed in that year.
3.Do not construct a house within three years of transfer of assets which was sold.If you do that , punishment is same as point 2.
4.Do not transfer the NEW house purchased  or constructed within three years from the date of its purchase , otherwise exempted part of capital gains will be taxable in the year of sale .If you do that , exempted gain will be charged to tax in the year in which sale took place.
5.Do not put the new house on rent  in the year of purchasing, otherwise you will not be eligible for exemption u/s 54F.If you do in the year of purchase , you will not be eligible for exemption u/s 54F.
6.Do not keep the balance of money not utilised for purchase or constructing beyond last date of filing return u/s 139(1)  in your hand. if you want to use the money in coming months and do not want to pay tax , deposit the balance money in Capital gains Accoun

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