LCTG on flat sale

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This discussion addresses the calculation of Long Term Capital Gains (LTCG) tax on the sale of a flat purchased for ₹2 million in 2014 and sold for ₹7 million in 2023. It clarifies that investing tax gains in stocks typically does not exempt one from LTCG tax. The conversation also touches upon whether EMI payments can be included in the cost price for tax computation, noting that the initial purchase price usually covers all associated costs.

apro

apro (Querist)
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20 August 2023 I bought a flat for 2 million INR in 2014. The flat is sold for 7 million INR in 2023.
When filing returns how much I need to pay as tax on LTCG ? To avoid paying tax can I invest the tax gains in purchasing stocks ?

Please advise.

Aashok Kumar Sharma online

Aashok Kumar Sharma

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20 August 2023 I don't think by purchasing stocks we can avoid LTCG. Please read the article for computation of taxes https://www.bankbazaar.com/tax/how-to-calculate-capital-gains-tax-on-house-sale.html

apro

apro (Querist)
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20 August 2023 Can the cost price of flat include EMI paid ?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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21 January 2024 If we include EMI then it will be double accounting here as FLAT Cost of 2M ALREADY includes the total amount payable for the flat purchase

https://taxguru.in/income-tax/interest-part-cost-property-eligible-indexation-deduction.html

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