Capital gains

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Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2013 Dear Sir,
In May,2012 I sold a residential flat in Rs 26,000,00/- and another ancestral very old house at Rs 17,00,000/- in Oct 2012.In August,2012 I purchased an undercontruction flat at noida from a reseller(a person who had earlier booked the same flat under construction linked plan and had paid Rs 15.82 lacs to the builder.
I made payments of Rs 15.82 lac plus Rs 7 lac(premium) through cheque to the reseller then through a tripartite arrangement the new flat was transferred in my name by the builder.Thereafter, till date I have paid Rs 514,000/- to the builder. NOW MY QUESTION IS

1)WILL I GET EXEMPTION IN RESPECT OF CAPITAL GAINS ARISING FROM THE SALE OF BOTH THE RESIDENTIAL PROPERTIES OR ONLY ONE OF THEM,

2) WILL THE PAYMENTS MADE TO THE RESELLER (IE., 15.82 LAC) PLUS THE PREMIUM AMOUNT OF RS 7 LAC BE EXEMPTED ALONG WITH RS 514,000/- PAID BY ME TO THE BUILDER AFTER TRANSFER OF NEW PROPERTY IN MY NAME.

THANKS1

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 February 2013 1) Exemption in respect of capital gains arising on sale of both the residential properties can be claimed.
2) Max. Exemption can be availed of
15.82+7.00+5.14. Premium amount is also cost of acquisition for you.

.

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2013 Paras Sir,
Thanks for your very ouick reply.One more important question as an afterthought. Will the service tax paid to the builder(included in all the transactions above execept the premium part), transfer charge of Rs 78,375/- paid to the builder and brokerage of Rs 35,000/- paid to the broker be included in the cost of new asset and claimed as exemption.
Thanks!

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