19 October 2012
Hi, My query is regarding capital gain issue. I had booked a flat in a society 2 years back in 2010 of Rs. 42 Lacs and possession of it was after 3 years in 2013 but in june 2012 i have transferred this flat to some one else at Rs. 55 Lacs and invest the same amount for booking of other flat. My query is that whether i will be attracted capital gain tax if yes then is it Long Term or Short Term and secondly whether i am eligible for exemption under section 54.
19 October 2012
If the capital gain is from short term, Sec 54 exemption is NOT applicable.Sec 54 benefit is for long term capital gains only.So in this case,the rights in the Property(though not registered but conditions of Sec 53A of Transfer of Properties Act are satisfied)becomes an Immovable property transferred within 36 months and considered as Short term capital asset.Such gain is Short term cap.gain.The new flat purchase can not have other exemption but the sale proceeds can be shown as the sources for Investment.If registration is completed,the stamp duty can be claimed U/s 80 C.
20 October 2012
Thanks a lot.. for the above query. Mr. Prasad is Section 54 Exemption possible if i hold this flat for one more year i.e transferred after 3 years and reinvest the same amount in another flat.
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