DWQA User Profile Garjana388Questions(3)Answers(5)Posts(0)CommentsDear SreekanthI sold my property in December 2017 and got full payment in January 2018. .Quote" To rationalise the existing provision relating to investment in capital gain bonds, the exemption will be available only in respect of long-term capital gains arising out of sale of immoveable property and investment in the bond will be for a minimum period of 5 year from the existing 3 years."UnquoteI am planning to put in 54ec tax bonds by February end. Please advise if this is for three years or five years. As this is in proposal stage I presume it will be effective next financial year from April 2018RegardsGopalakrishnannOn Answer for Long term capital gainsChange in today's budget.Quote" To rationalise the existing provision relating to investment in capital gain bonds, the exemption will be available only in respect of long-term capital gains arising out of sale of immoveable property and investment in the bond will be for a minimum period of 5 year from the existing 3 years."UnquoteI got my property in December 2017 and got final payment in January 2018. I plan to invest in 54ec bonds by February end. What is implications to me. Should it for five years or three years. Will it make difference if I invest right away.On Answer for Long term capital gains (Sale of Property)Hello Sreekanth. I tried calculating LTCG through various online free tools. The results I get differ from each other and difference in few lacs. Can you suggest a tool or help me in correct calculation. I am giving below the details.DATE OF PURCHASE25-11-1994VALUE OF PURCHASE310000STAMP DUTY PAID AT THE TIME OF REGISTRATION10000DATE OF SALE20-01-2018VALUE OF SALE3865000BROKERAGE77300LEGAL10000TRAVEL EXPENSES35000On Answer for Long term capital gainsI am giving below the event calendar.1.Booking of flat Oct 2017. Property identified and booked.2.Agreement for sale Dec 2017. Stamp duty paid.3.Sale of existing property flat Dec 20174.Sale of existing plot March 20195.Expected possession of new flat June 2020/June 2021Commitment by builder (under RERA) JUNE 20226.Can I put the sale proceeds in CGAS account and use at appropriate time ( to avail benefits of sec 54 LTCG ) as within two year before the possession/ sale deed should executed.7.Should in purchase Capital gain bonds8.My payments to builder are due in Dec 2017, June 2018, June 2019 and June 2020.9.I have no other source of funding except sale of property and personal saving as I am retired and banks are not approving 80% loan only 20% they are willing consider.10.Flat sale cannot be postponed as I need money to pay June 2018 instalment to builder..11.will I still be within the framework of section 54 if put in CGAS and pay June 2019 instalment12.How do I tweak my plan to be within the framework of section 54 to avail LTCG13.Which is better option Please advise if I can avail the benefit of LTCG On Answer for Long term capital gainsIn continuationWhat is CGAS account. I sell my property in December 2017 deposit in CGAS ACCOUNT and use the same in June 2019 to pay builder which is booked iand abreement for sale done in December 2017 . Expected possession earliest is June 2021 latest by June 2022( for RERA) . Will I still be able to claim the benefit under section 54 for LTCG. please advise.On Answer for Long term capital gainsDear SreekanthI am giving below the event calendar . Please advise if I can avail the benefit of LTCGBooking of flat Oct 2017Agreement for sale Dec 2017Sale of flat Dec 2017( existing)Sale of plot March 2019( existing)Expected possession of new flat June 2020/June 2021Commitment (under RERA) JUNE 2022I am not able to time my sale of property due to too much of variation in time schedule by builder. If he gives OC BY 2020 then my schedule of sale will not attract LTCG. but if he goes to 2021 or 2022 then my schedule goes hayware. Is there any case laws which is in favour of purchasers if I make the payment of sale proceeds directly to builder to prove my intention and still not adhere to deadline of section 54. Is there any way I can avoid LTCG by putting the sale proceeds in capital gains account fand use the same at appropriate time to meet the needs of section 54. Or to be on safer side I should buy bonds and block for three years. On maturity should I use the funds only for purchase of property or it could be used for other purposes.I am at loss to understand the logic of one year before and two years after as the schedule of builders are never consistent but payment to builder has to be consistent. Will the agreement for sale a good documents to prove my intention of using sale proceeds of existing property for purchase of new flat. please clarifyOn Answer for Long term capital gainsDear Sreekanth I went through your article on LTCG. Quite informative. Thanks for detailed explanation.I am paying few of my payment from loan/ oD to meet immediate down payment to builder. It's taking some time to dispose off my property. I don't want to default builder payment. So if I pay from my loan/ OD And square my OD account, will it be technically considered as technical compliance under LTCG and will not be disallowed.On Answer for Long term capital gainsCrop
