Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Long term capital gain

07 May 2014

I Have two residential flat in mumbai one on rented and another i use for self living. My question is i have already sold rented house property in march 2014. and purchased a new residential property at rajasthan using capital gain amount. I also want to sele second house which i have use as a self occupied house. please suggest that this long term capital gain can i use to construct in purchased rajasthan house or i shall purchase new one. If i purchase new one than it is ppssible to claim thos LTCG because i have already one residential house. how i calculate indexed capital gain if i paid to builder as per their demand letter according to conatruction linked. please help Regards

Reply
Follow
Share

3 Replies

R R JHUNJHUNWALA (GM) (33 Points)
Replied 07 May 2014

How many residential house purchase in this type of situation

Mihir (Wealth Manager) (5293 Points)
Replied 07 May 2014

One may purchase a new property within 2 years or construct a new property within 3 years from the date of selling the property to avail exemption u/s 54.

R R JHUNJHUNWALA (GM) (33 Points)
Replied 07 May 2014

If i purchase two house from this LTCG in two different city then what is the tax exemption . If i purchase semi finished usable residential house after some time can i use the fund of LTCG of sell of second residential house to expand the new house which i purchase from the fund received from first house sold. Have i can claim LTCG in this situation. Have any limits in no of residential house for avail this benefits.