Short term capital gain

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RUPESH R.H. (Querist)
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28 February 2012 Sir,
I have 1 Query about Capital Gain i.e. House Property . Assessee has fulfill the following conditions

1) He is Individual
2) The Property is Self Occupied
3) The Property is Short Term Capital Assets

Sir Assessee sold the Property of Rs. 24,00,000/- (deposited in SB A/c) dt 15.1.2012 for A.Y.12-13 Which he had acquired for Rs.12,25,000/-dt. 1.9.2009 in A.Y.2009-10 against Housing Loan of Rs.10,00,000/-. The Outstanding Loan is Rs.9,45,000/- in F.Y.2011-12. Sir, I want to know how to calculate Short Term Capital Gain for the A.Y.2012-13 i.e. current Year. Transfer Chgs has Rs.25500/-
Assessee still not purchased new property . However, Assesse has square up the outstanding loan of Rs.10,00,000/-
Sir I want to know that whether he can get any exemption u/s 54 or not ? pls tell me the calculation.

Awaiting yours reply
RUPESH

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 February 2012 Exemption under Section 54 is available only if the house property was a long term asset.

Accordingly, entire gain arising on transfer of the house property shall be taxable.

RUPESH R.H.

RUPESH R.H. (Querist)
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29 February 2012 Sir,
pls let me know the income and tax (in details). Let me know that is Income from Business or Income from House Property ?
If suppose assessee purchased new property in f.y.2012-13 in mar'12 of Rs. 20,00,000/- then he could adjust the STCG against new property purchase cost.or How could he adjust the Gain (STCG) ?
Let me know in details Pls
Awaiting for ur reply
RUPESH

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 February 2012 The income is taxable under the head Capital Gain as short term capital gain.

Computation:

Sale Consideration Rs. 24,00,000
Less: Expenses on transfer Rs. 25,550
Net Sale Consideration Rs. 23,74,450
Less: Cost of acquisition Rs. 12,25,000
STCG Rs. 11,49.450

This STCG shall be added to your other income and normal tax rates shall apply to the total income.

As I said earlier, purchase of a new house is not eligible in this case, since the asset sold is a short term asset (held for less than 36 months).

There is no way to reduce this gain.

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