Calculation of LTCG and opening of LTCG deposit account

Yes you can purchase a plot from your wife and construct property on same and claim exemption of capital gain. To prove you need to have bills of the contractor showing the amount spent and also bank payment evidencing same.

If you are going to purchase a new residential property then you only need to invest capital gain amount and not entire amount as per section 54.

If you cannot purchase or construct the residential property within stipulated time then you need to pay the capital gain tax which you claimed as exempted.

I think every nationalised bank provides this facility of opening a capital gain account and deposit money and you don't need any permission before using that amount.

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Thank you

Dear Sir,

Hope you are doing well !!

-Yes, you can purchase the new property in the name of your wife/son. 

 However, to be on the safer side, it is advisable that to buy the new property in joint name.

-Yes,but you will have to construct the residential house within 3 years from the date of sale/transfer.

-Contractors bills, bank statements.

-Only the LTCG amount needs to be invested for capital gain exemption.

-If condition is not fulfilled, then the you cannot avail the benefit of the exemption under Section 54.

You will be liable for capital gain tax.

-Contact any nationalised bank for procedure.

-The long term capital gain tax amount would be Rs. ~3.81 lakh without considering cost of improvement & brokerage. It is difficult to take the benefit of cost of improvement & brokerage without proofs.

Hi

2. Yes, provided proper consideration is paid and property is registered- stank duty paid.

3. You need to purchase a new land in order to claim exemption.

4. Proofs of payments and bills from the contractor.

5. LTCG amount.

6. Ideally, construction must be completed within 3 years of sale of old property. However, genuine delays are allowed. 2 years limit is for purchase of ready to move in property. For construction, it's 3 years.

7. No such refund.

8. You need to open CGDS account in a bank. For withdrawals, form needs to be submitted to the bank. No permission from IT department.

9. Your capital gains come around 18.51 lacs.

Dear Sir,

1. You can retain the capital gain in your Savings Account till the date of filing the Income Tax Return or till the due date of ITR filing. The last date of filing ITR is for the financial year in which capital gain arises. Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year. Under extraordinary circumstances, it can be extended by the Finance Ministry.

2. Option 4 is best choice.

It is not advisable to include Non Earning member in joint property purchase even if she is your wife.

You need to deposit the amount in CGDS before return filing or due date of return filing, whichever is earlier.

Option 4 or 5 would be good to go.

You need to deposit the amount in capital gain account before filing your income tax return.

with regard to the purchase of the new property it won't really make any difference if you purchase the property in your son's name your name or your wife's name. But since your son is an NRI for future purposes it would be better if you register the new property in your your wife's name.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Answer to you sub question:

1. Amount in  Capital gain account to be deposited before return filling date for the year in which sale took place.

2 & 3. Yes power of attorney can be given and you can do the transaction on his behalf.

4 & 5. In order to claim the Capital gain tax benefit,new property should be in name of seller. So yes accepting gift is better option. Execute a proper gift deed for the same.

Hope it helps