Short term cap. gain.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 A person having STCG of Rs.500,000/- on sale of house. and Rs.200,000/- on sale of shop.
He is also having LTCG of Rs.15,00,000/- on sale of house property.

And he invested all the proceeds in purchasing a new house for Rs.40,00,000/-

How capital gain will be calculated.
whether STCG can be adjusted in investing in new house property.

Thanks in Advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2015 Only long term capital gain is exempted. STCG can't be adjusted in investing in new house.

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Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2015 OK one more query:
suppose a plot was purchased on 1.4.2010 for Rs.10 lacs.

and house was constucted during 2012-13 & 2013-14 for Rs.20 lacs in each year.

And the house was sold on 1.4.2015 for rs.75 lacs.

Whether constructiontotal cost will be indexed while calculating LTCG.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 August 2015 Construction cost will be treated as short term not liable for indexation.

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