8/29/2019 TEP: Additional Resources (Capital Gains)

Tax & Estate Planning

Home / My courses / TEP / Tax and Estate Planning / Additional Resources (Capital Gains)

Navigation
Additional Resources (Capital Gains)
 Home
 Dashboard I has some shares that I sold on January 15 at Rs 100 a share. The cost of acquisition of a share was
 Site pages Rs 20 and hence I have made a long-term capital gain of Rs 80 a share. From January 15 till March,
 My courses I had used Rs 15 for repaying my loans and Rs 20 for other expenses from the consideration of Rs
100.
 CFP_Intro
If I buy a house out of the balance of Rs 65, I understand that I will be able to get full tax
 RM&IP
exemption for Rs 65 and the tax on long-term capital gains would apply only on Rs 15 – Rs 80-Rs
 RTP 65. If not, do I need to invest the entire Rs 80 for claiming exemption against the long-term capital
 IP gains? – Niraj Saraf
 TEP
 Participants Answer) On sale of shares and on reinvestment in a residential house you will be entitled to claim
 Badges exemption under section 54F of the Act.
 Grades For claiming exemption under this section, the assessee should be an individual or HUF, the gain
from the transfer of a long-term capital asset that is not a residential house and the assessee does
 General
not within two years purchase or three years construct a residential house other than the new
 Tax and Estate Planning
house. Moreover, the assessee should not be the owner of more than one house (other than the
Reading Material new asset) on the date of transfer of the original asset.
Reading Material (Estate
Planning) PDF's Section 54F allows an exemption. The exemption is the entire capital gain if the amount invested is
Profits and Gains of more than or equal to the net consideration. The exemption is the amount invested multiplied by
Business or Profession the capital gain and divided by net consideration if the amount invested is less than the net
Topic No. 1 Salary consideration.
Topic No. 1 Income from In your case if you invest only Rs 65 out of the capital gains the exemption under section 54F will
House Property be computed on a proportionate basis in the manner indicated above. You may, however, note
that you have not taken into account indexation in computing the capital gains. Where the gain is
Additional Resources
long-term the benefit of indexation would be available in computing capital gains.
(Capital Gains)
Topic No. 1 Capital Gains
Indexed cost of acquisition is to be computed by multiplying the cost of acquisition by the cost
Topic No.1 Income from inflation index of the financial year of transfer and dividing it by the cost inflation index of the
sources financial year in which the asset was first held by the assessee or the cost inflation index of the
Topic No.1 Agriculture financial year 1981-82, whichever is later.
Income Indexed cost of improvement is to be computed by multiplying the cost of improvement by the
Set off Topic cost inflation index of the financial year of transfer and dividing it by the cost inflation index of the
 Simulated Tests financial year in which the improvement took place.
 Recorded Live Virtual Classes ( You may note that the question of cost of improvement and consequently indexed cost of
Download webex sof... improvement will not arise in the case of shares.

 AFP
For 2010-11, I have made a short-term capital gain of Rs 4,35,000 on sale of flat and Rs 67,000 on
sale of shares. I have other income of Rs 47,000. I have made a contribution of Rs 1,00,000 eligible
for claiming deduction u/s 80C. Am I eligible to claim deduction u/s 80C against these income and
also the basic exemption of Rs 1,60,000.

Last modified: Thursday, 4 January 2018, 11:58 PM

◄ Topic No. 1 Income from House Jump

Property
to... Topic No. 1 Capital Gains ►

You are logged in as Harshit Patel (Log out)

TEP
Data retention summary
Get the mobile app

https://learn.proschoolonline.com/mod/page/view.php?id=448&forceview=1 1/1