LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Capital gain

Amit Sharma (article) (26 Points)

29 September 2016

Dear Sir/madam I have two flats out of which one am selling off and re-investing the same amount for another flat whether capital gain will be charged on such property?? If Yes,Than will you please help me out what should i do to not pay taxes on such property ???

Reply
Follow
Share

7 Replies

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 29 September 2016

As per sec 54 of income tax act 1972 exemption on capital

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 29 September 2016

You can avail benefit u/s 54.
As per sec 54 house property should be completed as specified by prescribed time limit, i.e. purchase one yr before transfer or
purchase two years after transfer or
constructed three yr after transfer.

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 29 September 2016

Now if your exist house is fall under above mentioned time limit you can get exemption to pay capital gains tax.
But subject to invested amount in new house property should be less than or equal to capital gain value.

Amit Sharma (article) (26 Points)
Replied 29 September 2016

Dear Sir the property which am sellingoff is of period more than 3 yrs ago??

Amit Sharma (article) (26 Points)
Replied 29 September 2016

will u please help me the way out to not pay tax on capital gain??can i transfer the property to spouse before selling of if he owns no property???

ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 29 September 2016

If you transfer to your spouse it will not treated as transfer.
What I feel you can at any time within a period of six months after the date of such transfer, invested the whole or any part of capital gains in the long-term specified asset.
Specified assets are the bonds redeemable after 3 years issued by National Bank for Agriculture and Rural Development (NABARD) or by the National Highways Authority of India (NHAI) or the bonds issued by Rural Electrification corporation Ltd. With effect from A.Y 2002-03 National Housing bank and SIDBI have been also included who can issue such bonds u/s 54EC.