Capital gain tax on sale of residential property
This query is : Resolved
Pravin Kamat
(Querist)
18 March 2019
I purchased a flat in 1982 with area 500 sq. ft for Rs.1.00 lakhs. The property was redeveloped and I was allotted a flat with area of 700 sq. ft. in the new building as per agreement signed and registered in October 2015. The possession of the new flat was received in February 2017. This flat was sold in February 2018 for a consideration of Rs. 1.40 crore. Will this transaction attract LTCG or STCG tax and what is the caculation of the same.
K Srinivas, CMA CS
(Expert)
18 March 2019
Capital gains in case of redeveloped house properties occur two times - 1. when the property is offered for redevelopment and 2. when the redeveloped property is sold.
K Srinivas, CMA CS
(Expert)
18 March 2019
I assume you would have already paid capital gains tax during the first instance.
For calculating the date of acquisition of the redeveloped property, date of completion/possession will be considered (in your case Feb 2017). Since the property is subsequently sold before two years, the resultant capital gains will be short term in nature
Dhirajlal Rambhia
(Expert)
21 November 2021
If you had claimed deduction u/s. 54, LTCG tax liability will get attracted in PY.
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