Capital gain on residential house

This query is : Resolved 
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This discussion clarifies how capital gains tax is calculated on a residential property sold in July 2022, when the plot was purchased in April 2019 and construction was completed in 2020. The key factor is whether construction finished before July 2020. If completed before this date, the entire gain is treated as long-term. If construction finished after July 2020, only the gain on the land portion qualifies for long-term capital gains tax, with the rest falling under short-term capital gains.

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(Querist)
15 March 2023 Dear Sir,
It would be under short term capital gain or long term capital gain in following conditions -

1. Residential plot purchased on April 2019.
2. Construction done during 2020.
3. House sold on July 2022.

Please clarify.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
15 March 2023 Whether construction completed before July 2020?
If yes, then whole HP will be eligible for LTCG..
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tony

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tony (Querist)
15 March 2023 yes it was completed, and if it is completed after july 2020 then how it would be calculated
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
15 March 2023 In that case LTCG will be only over Land portion, while rest part will be under STCG.
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