Capital gain query

Mihir (Wealth Manager) (5293 Points)

01 March 2015  

An individual sold a property incurring a LTCG of 45 lacs/- in the July FY 2014-15

He re-invested the LTCG in September months in FY 2014-15 in a property having value Rs. 36 lacs

He will claim exemption u/s 54 of Rs. 36 lacs in his return for FY 2014-15 and pay some tax is required.

Now, he wants to sell this same property in April FY 2015-16 for Rs. 36 lacs. This will cause nil STCG / LTCG even if sold within 3 years. Out of this Rs. 36 lacs, he wants to buy another property of 22 lacs.

What does he have to show in his return for the FY 2015-16. Since there is no capital gain, and he is investing only 22 lacs from 36 lacs, any idea how the IT dept might view such transactions?

  Thanks