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

Short term capital gain

Sangeeta (Finance Professional) (158 Points)

10 June 2016

Respected Sir,

Please tell me for the A.Y. 2016-17 the entire amount of sale and purchased is mentioned as per Valuation in Stamp.

A) 1) Purchased a plot of Land on 17-04-2015 at Rs. 61500/- and Sold the same plot on dated 21-01-2016 at Rs. 435500/-

2) Purchased a Plot of Land on 11-08-2012 at Rs. 19000/- and Sold the same plot on dated 29-04-2015 at Rs. 376500/-

Thereafter I have calculated that the Taxability is falling under Short Term Capital Gain.

B) I have purchased a plot of Land on dated 16-03-2016 at Rs. 469800/- and not sold till dated.

What will be my taxabiity I have earned Rs. 7,31,500/- as STCG but I have invested the part of amount in purchase of Land at the same year.

Please suggest what will be my tax.

Reply
Follow
Share

10 Replies

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 11 June 2016

whole amount of Rs 731500 is taxable as capital gain. You will not get any exemption under section 54 or any subsection of 54 because in case of sale of land such exemption cannot be claimed however if agriculture land is sold than no tax liability will arise. In current case you have to pay tax by applying basis exemption limit. STCG other than section 111A is taxable as per normal limit. Hence tax payable by you is Rs 73439 or 73500..

1 Like

CA Saurabh Singh (Practising Chartered ) (974 Points)
Replied 11 June 2016

Hi Sangeeta,

In your case the entire short term caoital gain would be taxaxble and no deduction could be claimed u/s 54 & 54F as the same is only claimed when the property sold is long term unlike your case.

Hence the entire STCG would be added to your taxabel income and taxed at normal individual slab rate.

Thanks

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 11 June 2016

Respected Sir,

A) 1) Purchased a plot of Land on 17-04-2015 at Rs. 61500/- and Sold the same plot on dated 21-01-2016 at Rs. 435500/-

Ans. If the plot of land is falling under the definition of agriculture land than no tax is payable and if it is urban plot of land than it is taxable. Here it is short term capital gain under normal slab rate.

2) Purchased a Plot of Land on 11-08-2012 at Rs. 19000/- and Sold the same plot on dated 29-04-2015 at Rs. 376500/-

Ans. Here also it is the short term capital gain.

Your tax liability is Rs.73500 plus interest if any.

1 Like

abhishek agarwal (237 Points)
Replied 11 June 2016

wt rule7 appointment and renumeration of personnel, about listed and subsidiaries of listed companies. ...whether they have to take CG approval or wt?

Sangeeta (Finance Professional) (158 Points)
Replied 12 June 2016

1) Sir the land is situated at PANCHAYAT AREA but it is not agriculture land.

2) but I have investment Rs. 469800/- on Purchase of Land at same year then in this condition no exemption could be claimed?

3) it means that the Short Term Capital gain amounting Rs. 731500/- @ 15% = Rs 109725/- will be the tax amount.

4) Normal Tax Slab will be treated Income Tax Rs. 73439/-

My Question is why not 15% will be charged as it is STCG. please tell because my consultant have told that STCG attract 15% tax on STCG.

please explain

Sangeeta (Finance Professional) (158 Points)
Replied 12 June 2016

Please reply Experts

Ruchi (CA) (1410 Points)
Replied 13 June 2016

You cannot claim benefit on purchase of land by selling another piece of land . There is no provision under Income tax act which would allow this deduction. There is one provision which covers land for industrial purposes but no not your case. Hence no deduction or exemption is available to you on this.

Your short term capital gains will be charged under normal slab rate and not 15% flat. 15%on stcg is chargeable in certain cases but it is not in the type of cases as yours.

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 13 June 2016

Short term capital gain with stt i.e. STCG 111A is chargable @ 15%,

Your STCG is chargeable at normal slabe rate.

payal (Study) (106 Points)
Replied 19 June 2016

15% apply when capital gain arise due to transfer of equity share in a company , unit of equity oriented fund or unit of business trust but your case is different so normal slab rate will apply

1 Like