Reinvestment of sale proceeds of residential property

Hi Deepa,

Firstly, are required to invest only the capital gain amount and not the entire sale proceeds.

Further, you can't invest in bonds now because time limit for investing in bonds is six moths from the date of sale of the old property.

Also, please note that if you can't purchase the property before July 2018, you will have to park the money equivalent to capital gain amount in cgds scheme, in order to claim exemption.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

You just need to reinvest the capital gains amount to claim exemptions. What is the capital gains amount?

You can get in touch with me for further clarifications.

Regards,

Nikhil

HI,

Yes, you may take the exemption. Please remember only capital gains needs to be invested in the purchase of new property or CG bonds. You need not invest the entire sale proceeds to take CG tax exemption. Also CG Bonds are required to be purchase within 6 months of sale transaction.

Thanks

Damini

Investment in bonds needs to be made within six months from the date of transfer. Now invest the whole amount in property.

For calculation of capital gain I need cost of acquisition and date of purchase.

Sure. For that I would need the purchase date and price of the property you sold.

Also let me know if there was any other major amount spent on the house and when.

Yes, we can help but we will need the following info:

1. Purcahse cost and purchase date of the property

2. Improvement cost and date (if any improvement made in the property)

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi Deepa Arvind

Capital gain bonds cannot be purchased now because it is now more than 6 months of transfer of property.

Capital gains calculations should be done before arriving at any tax saving option.

Please provide the following details:

1. Date of acquisition of old property

2. Cost of acquisition of old property

3. Date and cost of any improvement in the property

4. Date of sale of old property

Firstly only the capital gain amount is to be invested not full sale proceeds.

For Calculating your capital gain amount,sale value,date of purchase,cost of purchase,any additional improvement cost incurred along with yr (if any) will be required.

Further investment in bonds can also be done to get tax benefit,but it is to be invested within 6 months from date of sale and maximum amount that can be invested is Rs 50 lacs.

Hope it clarifies