CCI Online Learning
What do you want to learn today?

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Regarding Sale And Purchase of Residential Property

This query is : Resolved 

Dear Members,

I have a query regarding Purchase and Sale of a Residential Property and would be very grateful if you all could put some light on to it.

Ours is a family business and my father is buying a home worth 4.5 Cr in which we would take a loan of 3 Cr from the bank.
At the same time we would sell the house in which we are living at a rough price of 1.5 Cr within a period of 1 year after purchasing the new home.

This amount of 1.5 Cr we would want to use in our business after a span of 1 year but as per our CA this 1.5 Cr would be applicable for Capital Gain.

My question is that when we are already buying a residential property and taking a loan of 3 Cr and selling a our exiting house within a span of 1 year then why will Capital Gain be applied to the 1.5 Cr what we will get after selling our existing home. Pls suggest

Your contention is correct.

See, this window of in all 3 years (1 year before or 2 years after) is very critical. Many case laws suggest that mere possesion is not the confirmatory test of transfer of asset. So to say I suggest that you better ask your CA why he is contending so,

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Trending Tags
GST Live Class    |    x