Capital Gain tax liability

This query is : Open

Dattatray Kolte (Querist)

21 September 2017 I bought 1 bhk in year Aug 2013 with 1. flat cost - 2728000 2. Stamp Duty- 136400 3. Registration - 27280 4. other expenses like safety door and grill: 30000(but paid by cash) Due to some financial issue in year 2017 i want to sell this flat at 3875000. (Note: I have total 3 flat, 1. bought in 2009 got possession in 2014, 2. bought in 2012(the one which I want to sell) 3. bought last month Aug 2017 Question: 1. what will be capital gain tax i need to pay after indexiation. 2. if I invest all capital gain to repay loan for the flat purchased in Aug 2017, can I save the tax Thanks for the reply

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

21 September 2017 1.Your long term capital gain will be zero. So no need to pay tax 2.No tax exemption allowed on payment of flat.You can claim deduction u/s 80C for principal payment of house loan.

Chhatra Singh Dugar

Chhatra Singh Dugar (Expert)

21 September 2017 As you sell the flat within 2 years your capital gain will be short term. No indexation benefit will be available to you. No tax will be saved if you invest in any property or any other mode.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

22 September 2017 Property purchased in 2009 & sold in 2017 then it is capital gain.

Message likes : 1 times

Dattatray Kolte

Dattatray Kolte (Querist)

23 September 2017 @chhatra, property purchased in 2012. so almost 5 years now

Chhatra Singh Dugar

Chhatra Singh Dugar (Expert)

23 September 2017 Mr Kolte As property was purchased you in 2012, hence your capital gains will be long term. Taking into consideration of indexation there will be no capital gains and no need to pay tax. As regards to your second query you will not have any tax savings if you invest capital gains to repay loan

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