12 August 2013
My client has purchased a Flat in December 2010 and sold it in June 2013. Then purchased a new Flat in July 2013. Whether he can avail benefit of exemption U/S 54 . Plz suggest how we can avoid capital gain tax on this transaction ( sale of Flat )
12 August 2013
In my understanding, opinion on your Query is:
In your case the Assessee sold the property in less than three years time, hence it is short-term Capital Gain. The Gain is taxable at the prevailing tax slab applicable to the assessee depending on his/her other incomes.
Note: Long-term Capital gains are eligible for exemption on re-investments by virtue of Sections 54, 54EC and 54F. Long-term Capital gains would be only if you hold the property for more than three years, and the gains are taxed @20% only.
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