vinayak c. chavan (CPT passed) (1011 Points)
14 June 2016I am resident indian female aged 40. I have purchase one shop (gala) in March 2013 for Rs.10 lacs and sold it in June 2016 for Rs.60 lacs. What would be taxability on this transaction? How can I avoid taxation on this transaction. From this transaction I want to purchase residential property, so will it be helpful to avoide taxation!
CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 14 June 2016
Since the asset sold is a long term capital asset, Rs.50 Lakh(before applying indexation benefit) will be taxable as long term capital gain @ 20% as per section 112. However, you can avoid this by investing in one house property in India if fulfils the conditions specified in section 54F.
CA Saurabh Singh
(Practising Chartered )
(974 Points)
Replied 14 June 2016
Hi Vinayak,
Your transaction would be covered under Long term capital gain as unde :
Sale Consideration == Rs. 60Lakhs
Less: Ind. value of property purchase== Rs. 13.20Lakhs
LTCG Rs. 46.8Lakhs(Taxable @ 20%)
In order to claim exemption you can invest the amount either in bonds as per sec 54Ec or invest in residential house as per sec 54F of Income Tax Act
Vishal Varun
(Student)
(648 Points)
Replied 14 June 2016
sale cosnsideration = 60 lakh
less : Indexation cost of asset (approx) = 13.5 Lakh
LT Capital Gain = 46.5
if u Purchase any new residential house 1 yr before or 2 yr after trf.
or
construct within 3 yr
Propertionate amt should be exempt.
Please refer sec 54 F.
payal
(Study)
(106 Points)
Replied 19 June 2016
You should purchase a residential house with in 2 year or construct with in 3 years from date of transfer
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