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Sale of a house property

Akshay Bhatt (Sr. Exec. Asst. - Finance & Accounts) (34 Points)

08 April 2019

Dear All,

Greetings!!!

I have a confusion related to sale of my house property.

I am going to sale my house property which was I have purchased in June 2015 and got possession in February 2017.

If I received all money in this FY 2019-20, then what will be the effect on my income tax return? Is there any effect of Long/Short Term Capital Gain effect or all money what I have received by selling of my house is fully taxable?

Please guide me.

Regards,

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6 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 08 April 2019

since you are receiving the entire consideration in current fy then you will be liable to long term capital gains tax in ay 2020-21. only the capital gains and not the entire consideration is taxable. you either need to invest the capital gains in another house property or deposit the same in capital gains tax savings bonds max upto RS.50lacs which will be locked in for a period of 5years.

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Harshit Baheti (344 Points)
Replied 08 April 2019

Long term
Can take benefit of 54 and 54EC

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Akshay Bhatt (Sr. Exec. Asst. - Finance & Accounts) (34 Points)
Replied 08 April 2019

Thanks for your reply.

Can I purchase a new house property immediate after receiving consideration?

Matoshree Thakur (other) (295 Points)
Replied 08 April 2019

Yes, and can claim exemption u/s. 54 of IT act.

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 08 April 2019

first you need to get the property transfered in your name through the sale deed then only the transfer is effective and capital gains wud arise in the year the transfer is executed
after that you can invest in property

1 Like