Transfer on long-term capital assets can also be a
depreciable asset held for not more than 5 years.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
The SSC should not transfer or convert or avail loan or
advance for a period of 5 years from the date of
acquisition.
You sold your capital assets, like drawing, painting,
sculpture, any other work of art.
You collected money and gave it to the builder.
Today you have a 900 square feet house, a small garden and
a roof.
When it rains, you go to the roof and enjoy the view.
On the 15th of August, you go to the roof and fly your kite
and say,
IPO, now you have that house.
Sir, in this case, try to understand the case.
What am I saying?
Here, this person is selling his wife's jewellery, selling
his gold, selling his shares.
As soon as he sells, what will he get?
What will he get? Capital gain.
But what should it be? Long term capital gain.
Is he selling his jewellery and shares for fun?
No. Why is he selling?
So that one day he can buy this house.
This is the first house of his life.
This is the first house.
He is selling it so that he can buy his first house.
He is selling his assets to buy a house.
So should he be taxed for long term capital gain?
He is already in trouble.
He is already selling his wife's jewellery to buy a house.
Even if you tax him, how will he be able to buy a house?
How will he buy a house?
In this case, the government said, we also understand the
pain of that person.
We also want him to live in a 900 square feet house and fly
a kite on 15th August.
In that case, we bring a new section called 54F.
What does this 54F say?
It says that if you have a long term capital gain, we will
exempt it if you buy a house property from him.
And how to buy a house property?
How to buy a house property?
And how long to buy?
In the case of house property, one year before or two years
later.
For example, if I sell this here, this is my transfer.
So what should I do within two years?
I should either purchase it, or purchase it after two years
from the transfer date, or purchase it one year before the
transfer date, or one, two, three.
I should get it constructed up to this point.
If I do something like this, by selling my shares and
jewellery, if I do something like this, if I buy a house,
in that case, my capital gain will be exempted.
This is the point.
But, if you had a dream house, you had said that it is your
dream house, why are you selling it?
If you sell that house within three years, then whatever
capital gain you had, we had exempted it, considering your
decency.
Let's assume that you are not a decent person, you are a
bad person, and the capital gain you had was taxable, it
will be taxable in the year in which you sold that property.
This is the point.
And how much will be exempted?
There is a separate calculation for this.
What is it?
The amount you invest, amount invested upon net sales
consideration, net sales consideration, net sales
consideration, net sales consideration, into LTCG.
This works in this.
What does it mean?
Let me explain.
Why are you getting tensed?
It means that, the shares you sold,
Director sir, can you focus here?
Here.
Director sir is focusing.
Let me explain what it is.
Move it up a little.
That's it.
As I was saying, your sales consideration, the jewellery
you sold, how much did you sell in total?
Rs. 70 lakhs.
Out of Rs.
70 lakhs, your brokerage was Rs.
1 lakh.
Your net sales consideration, in this case, is Rs.
69 lakhs.
And let's assume, the indexed cost of acquisition,
I am calling it indexed, pay attention to this, because it
is a long term asset.
In long term cases, there is always indexation.
Let's assume my indexed cost was Rs. 19 lakhs.
What did I get out of Rs.
50 lakhs?
Capital gain.
What is this?
LTCG, long term capital gain.
And let's assume,
I bought a house for Rs. 35 lakhs.
What is the capital gain?
I bought a house for Rs. 35 lakhs.
Now how do I calculate this?
What is the LTCG?
Rs. 50 lakhs.
Multiplied by the amount invested,
Rs. 35 lakhs.
Net sales consideration is Rs. 69 lakhs.
The figure that comes out, what you have to do is, you have
to exempt this amount.
It will be exempted.
Let me show it to you.
50 lakhs of my long-term capital came out.
LTCG came out of 50.
How much did I invest in the amount? Rs.
35 lakhs.
The house was worth Rs.
35 lakhs, for example.
So, Rs.
35 lakhs came up and the net sales consideration of Rs.
69 came down.
What is this whole figure that I have to exempt? How much
will be exempted for long-term capital? The answer that
will come out will be the answer that will be exempted.
Approximately 50% will sit, around Rs. 25 lakhs, around Rs.
24-25 lakhs.
Let me move aside.
If you sell any asset, it should not just be a house, it
should be a property, it should be a jewelry, it should be
a share, it should be a sculpture, it should be a sculpture
etc.
Rs. 25 lakhs and Rs.
36 lakhs.
Rs. 231.
So, what is your Rs.
25 lakhs and Rs.
36 lakhs? This will be exempted.
What is the case? You sell any long-term capital and you
buy a house of your dreams.
Okay, buy it.
But when to buy? When you are selling that asset, buy it 1
year before that or buy it within 2 years.
Or if you are constructing, then construct it within 3
years.
According to this calculation, your capital gain will be
exempted.
If you want to click a photo of this, click it.
I will move aside once.
Did you click it? Come on.
Pause it and click it again.
Come on.
Next. This was the last case, friend.
There is no problem.
Come on, we will do fast reading.
Transfer should be of a long-term capital asset.
But it should not be a house.
Because if you sell a house and buy a house, it will be
covered in Rs.
54 lakhs.
Transfer of plot of land is also eligible.
If you had a land, you sold it.
Purchase was 1 year before or 2 years later.
And how much construction? Within 3 years.
And SSE should not own more than one residential house.
At that time, one small house is possible.
But it should not be that you have 5-7 houses.
One small house is possible in that case.
SSE should not purchase any other house within a period of
2 years or construct any other house within 3 years.
And this is the quantum of exemption which we had covered,
my dear.
If the cost of the new residential house is more than the
net sales consideration.
How much is the net sales consideration? Rs.
69 lakhs.
And how much was the cost of the new house? Rs.
1 crore.
In that case, Rs.
69 lakhs is exempted.
But if the cost of the new house was a little less, then it
would have come out from the same formula as we got.
And suppose you violate the condition, then the capital
gain which you had exempted will be taxable in that year.
Is there any problem, sir?
Let's see the last case.
It is said that we have to invest this money here.
Sometimes you are not able to invest.
In that case, should you get exemption or not? That is the
case.
Under section 54BDF, capital gain is exempt to the extent
of investment of such capital gain in the specified assets.
But if this investment is not made before the date of
filing the return of income, then capital gain has to be
deposited under the capital gain account scheme.
It means that the investment you do, if you sell a house
and buy a house,
if you sell a capital asset and buy another capital asset,
if you are not able to buy the assets by the date of return
filing, then deposit the money in CGAS.
It will be assumed that you have bought it.
You will still get the exemption.
But let's move ahead.
What is the time limit for this? Time limit is that such
deposit should be made before filing the return of income
or on before the due date of return of income, whichever is
earlier.
Proof should be attached with the return. Deposit can be
withdrawn for the purpose.
But the consequence is that if you have put that money in
CGAS, but you do not withdraw that money for 2-3 years,
then what will happen in that case? In that case, it will
be assumed that it is not your wish to buy a new asset.
You have made a false claim just to get that exemption.
What is the consequence in that case? That unutilized
amount shall be charged as capital gain of the year in
which the specified period expires.
Prof. Sanjay Gupta – Capital gain of the year in which the
specified period expires.
Prof. Sanjay Gupta – Capital gain of the year in which the
specified period expires.
Prof. Sanjay Gupta – Capital gain of the year in which the
specified period expires.
Prof. Sanjay Gupta – Capital gain of the year in which the
specified period expires.
Prof. Sanjay Gupta – Capital gain of the year in which the
specified period expires.