• Capital gain

-Plan to sell my plot guidance value is 36 lakh& market value is 70 lakh how to show additional market value money 34 lakh to my book legally.
-can l buy only plot from the proceeds got from selling the plot or I have to build house also to save tax
Kindly sugest
Asked 4 years ago in Property Law
Religion: Hindu

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6 Answers

Sir the capital gain is not counted from the guidance value it is calculated by Long-term capital gain Full value consideration Less : Expenses incurred exclusively for such transfer Less: Indexed cost of acquisition Less: Indexed cost of improvement Less expenses that can be deducted from full value for consideration*

So the amount after calculation shall be your capital gain on that either you have to pay the capital gain tax or to save you can invest in government bonds or house property.(Plot shall not be considered a house or flat need to be purchased or constructed))

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Client,

To save CGT - You purchase ONE house within 1 yr before the date of transfer or 2 yrs after or construct ONE house within 3 yrs after the date of transfer and do not sell this house within 3 yrs of purchase or construction.

Construction necessary.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

you can consult a property expert as well as financial advisor. They will devise strategies to get yourself out of the dilemma you are facing. Property expert is going to help you in finding the right buyer for the property and financial advisor to manage the finances generated by the sale of your property.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

If sale consideration paid is more than circle rate you must mention actual sale consideration of Rs 70 lakhs abd oat stamp duty accordingly

2) you can buy plot from. Sale consideration received by you on sale of plot and construct house within period of 3 years

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

The amount received towards sale consideration shall be the amount received by you, forget about the guidance value or market value on that.

You have to bring it to the book the actual and total sale consideration amount received

For exemptions under long term capital gains you may follow the procedures as provisioned in section 54 of income tax act. Until you are not buying a residential flat/apartment/house out of the capital gains amount, you will not be eligible for an exemption alternately under section 54F you can buy government bonds, you may consult your auditor on this.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

show guidance value plus a little more as agreement value

balance people mostly deal in cash

if you show entire market value in your agreement then you will have to pay capital gains tax on the whole

for saving tax you will have to purchase a residential house or construct a residential house

you will have to convince the assessing officer that the plot bought by you from sale proceeds of old property will be used to construct a house. Otherwise he will dispute the same and disallow the deduction benefit

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

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