• Registered value on paper OR the actual amount paid?

I have purchased flat in 2011 for 35,86.000. 10,86,000 arranged from my own funds and 25,00,000 taken loan from LIC.

When the flat was registered on April 2012, it was registered as per the govt value for 18,43,000 and registration charges of 1,23,950 coming 19,66,950.

I have sold the flat in September 2016 for 49,00,000 and it was registered for the same value. 

1. So while computing the long term capital gains, which purchase value we should consider as per income ta rules ?

Purchase value on paper : 19,66,950
Actual purchase value  : 35,86,000 (Sale agreement from builder mentioned the same and while applying for the home loan also same was considered by LIC)

2. If I need to put the long term capital gains money in the LTCG account , when is last day ?

3. If I need to pay long term capital gains and wanted to invest in another residential plot/flat, the same needs to be registered by September 2017 ?

Please let me know.

Asked 6 years ago in Capital Gains Tax

Hi,

1. You will have to take registered value as a cost of acquisition.

2. 31 July or return filing date whichever is earlier would be the last date

3. If you want to purchase new house, same needs to be purchased before September 2018. In case, you are constructing a house, same needs to be constructed on or before September 2019

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

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hello,

1. How can you register something for a lower value when in the agreement itself you are showing that you are paying a higher sum. Isn't that paying less of duty and the government will run after you ?

2. The last day to deposit the same is the due date of filing of returns for that year.

3. I did not understand the 3rd part you are paying capital gains and also investing in a property. ?

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Hi,

1. I am quite surprised that your sale agreement states Rs. 35.86 lakhs, but you registered it for Rs. 19.66 lakhs. The Registrar's Office usually verifies the sale deed for such differences. Nevertheless, I think that you should take the registration amount as the cost of acquisition.

2. You will have to invest in LTCG account before the due date of filing of return.

3. If you want to avoid tax and invest in another residential property, then you should register it by September 2018. If the property is under-construction, then it has to be registered by September 2018.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

Hi,

As you have registered your flat by paying lesser stamp duty. You have two options-

1) Either you can pay remaining stamp duty and show the actual purchase amount as cost of acquisition.

2) or you can show the purchase amount as mentioned in the sales deed.which will increase your capital gain

amount.

You can park your capital gain amount in CGAS on or before 31st july 2017. The deposited money can be used only to buy or construct a residential house within the prescribed time frame.

If you withdraw funds from this account, they have to be used within 60 days.

If you do not utilize the amount within three years of the sale of the first property, such un-utilized amount will be treated as LTCG this will lead to taxation of the unutilized amount as long-term capital gain after three years of the sale of the first / original property.

The interest rates paid on these accounts are the same as those on regular savings and term deposits. Kindly note that interest earned on this account is taxable.

So if you are interested in buying a house then you can park money in CGAS and is required to utilized within two years of the sale by September 2018, to purchase another residential house , or if planning to construct a new house within three years of the sale. i. e September 2019

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Hi ,

I think it can be paid with penalty charges, but it will a loss for your buyer, if he has also registered the property for lower value. you need to check it with a property lawyer.

your capital gain amount is coming around-Rs 2302795/-

you can split that amount by investing under sec 54EC- infra structure bonds for 3 years and CGAS.

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Query specifically referred to Vishaka.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

can you give me call at 9538801976

Vishakha Agarwal
CA, Bangalore
448 Answers
85 Consultations

5.0 on 5.0

Yes.

Rohit R Sharma
CA, Mumbai
2104 Answers
95 Consultations

5.0 on 5.0

Yes, the full amount of capital gain can be invested in the bonds subject to maximum limit of 50lacs.

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

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Yes, the full amount of capital gain can be invested in the bonds subject to maximum limit of 50lacs.

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

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

No the amount cannot be invested in 54EC bonds as it has to be done within 6 months from the date of sale.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
27 Consultations

5.0 on 5.0

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