1050 (Income tax) How must one utilise funds lying in Capital Gain Account? (Concept) Methodology - Harvard Case Model Narration - By Amlan Dutta Video Link - https://youtube/watch?v=sojRZzeb0-s Lets assume for a moment that i have capital gains from property sale for Rs 100 . Now i utilise a part of this gains to invest in new property for Rs 80 Rest , i put in a capital Gain account .... Now , i can either utilise this funds in same or different property under section 54 ( maintaining harmony ) but i can equally invest this gains in bonds under section 54 EC The basic thing to understand here is that i have gains from property of Rs 100 . Now of all the sections 54/54B/54D/54F/54EC/54G wherever i qualify based on nature of capital gains , investment condition etc , i can do the same Clearly i cannot avail exemption under section 54 B or 54 D because my gains are not from agricultural land or industrial undertaking .Nor can i claim exemption under section 54 F because ,i already had a property when i bought the new one Clearly section 54 and 54 EC helps me qualify because 54 EC is open to any type of long term capital gain and 54 is for capital gain from property ( which he qualify ) Note , so we now have a option to utilise the funds under section 54 in new property/properties or 54 EC in bonds to avail exemption ! We cannot however utilise such gains for buying my girlfriend a necklace or buy myself a Magnum beer ! We need to be pragmatic here ! Hope that helps , Amlan Dutta
Posted on: Sun, 02 Nov 2014 15:35:52 +0000
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