Answer:
The person is eligible to invest
the proceeds of Guindy House in to a
residential house at Adyar and there is no need to pay Capital Gain Tax. But,
there are some exception to this situations and they are as follows:
Situation I:
If it is a Short Term Capital Gain (Guindy
House purchased with in 36 months / 3 years) then the amount of Capital gain
will be added with their income of the assesse & will be taxed in the hands
of the assesse.
For Example: Date of Purchase -
30.07.2011 and Date of Sale 14.07.2014 (less than 3 years) Short Term Capital
Gain.
Situation II:
If it is a Long Term Capital Gain
(Guindy House Purchased more than 36 months / 3 years before) then the amount
of sale of the Capital Asset should be reinvested in a residential house (at
Adyar) at the time of investment the person had any number of house in his/ her
name, If he/she is eligible for reinvestment & the entire amount will be
taxed under capital gain as long term capital gain.
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