Capital Gain on sale of property

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This query is : Resolved

Sagar (Querist)

18 March 2009 Hi , I would like to have openion on the following query.

my brother has sold his residence in this financial year for profit. He bought that one year back. He is having another residence in different city and also planning to sell it. the time for holding this second property is 32 months approx.the date of sale will fall in FY 2009-10 Financial year. He already acquired one new flat. What will be the tax implication in this case?

M KRISHNAKUMAR

M KRISHNAKUMAR (Expert)

19 March 2009 no exemptions possible since the gain is short term. so no benefit if new house is purchased. but if second property is sold after minimum 36 months and 1 day holding it will become long term and against LTCG you can claim exemption u/s 54. if the date of acquiring new flat falls within 1 year prior to sale of second house after the said 36 months and 1 day using this asset itself exemption can be claimed.
but you will have to prove that some advance was recd in respect of second sale and that was invested in new purchase

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