Capital gain tax on sale of house property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
07 June 2012
Dear member
I have sold my residential flat in f.y. 10-11 and reinvest the amount in new flat (flat A)in the same year.
Now i wish to sell this flat (flat A) also and purchase the new flat (flat B). Since the flat (flat A) is sold with in a 3 years time whether
i have to pay captial gain tax on the earlier flat
i have to pay capital gain tax on the sell of new flat (flat A).
Can i take the benefit of the amount which is reinvested in the new flat (flat B)
I have sold my residential flat in f.y. 10-11 and reinvest the amount in new flat (flat A)in the same year.
Now i wish to sell this flat (flat A) also and purchase the new flat (flat B). Since the flat (flat A) is sold with in a 3 years time whether
i have to pay captial gain tax on the earlier flat
i have to pay capital gain tax on the sell of new flat (flat A).
Can i take the benefit of the amount which is reinvested in the new flat (flat B)
07 June 2012
1. The capital gain exempt earlier shall be reduced from the cost of Flat A and the balance shall be the cost of acquisition for computing capital gain on transfer of Flat A.
2. Since Flat A is being sold within 3 years, SHORT TERM CAPITAL GAIN shall arise on such transfer.
3. Exemption u/s 54 is available only in respect of LONG TERM CAPITAL GAIN. It is NOT available for short term capital gain.
Accordingly, you CANNOT claim benefit of investment made in Flat B.
2. Since Flat A is being sold within 3 years, SHORT TERM CAPITAL GAIN shall arise on such transfer.
3. Exemption u/s 54 is available only in respect of LONG TERM CAPITAL GAIN. It is NOT available for short term capital gain.
Accordingly, you CANNOT claim benefit of investment made in Flat B.
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