Applicability of ltcg on sale of residential property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 April 2012
I have in March 2012 taken a home loan for flat. I have paid all but Rs.8 lac to the builder. The possession will be sometime in May 2012.
I am planning to sell my old flat purchased in Feb 1998. There will be a LTCG of approx. Rs. 9 lac. Out of the total sale proceeds, I will repay Rs.10 lac home loan and reduce the loan before taking possession of the new flat.
The new flat is purchased two months prior to the sale of old flat, but possession is not taken yet.
I want to know if any LTCG tax will be applicable.
I am planning to sell my old flat purchased in Feb 1998. There will be a LTCG of approx. Rs. 9 lac. Out of the total sale proceeds, I will repay Rs.10 lac home loan and reduce the loan before taking possession of the new flat.
The new flat is purchased two months prior to the sale of old flat, but possession is not taken yet.
I want to know if any LTCG tax will be applicable.
CA CS Amit S. Kedia
(Expert)
09 April 2012
Possession is not the important for getting exemption u/s 54. You are eligible for exemption u/s 54 since you have already purchsed the falt well within the time.
Mihir Doshi
(Expert)
09 April 2012
You are eligible to claim the exemption.
Rule:
Property buying time = 1 year before or within 2 years from transfer of property
or construction of property with in 3 years.
Thanks
Mihir Doshi
Rule:
Property buying time = 1 year before or within 2 years from transfer of property
or construction of property with in 3 years.
Thanks
Mihir Doshi
CA Kishore Tallam
(Expert)
09 April 2012
Yes u will get exemption u/s 54 to the extent of capital gains only.
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