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kiran munji (Querist)
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03 October 2011 I purchased a property on 1-may 2011 for 37.3lacs, from a person who stayed in that property from dec 2007 to 1-may 2011
later i sold this property on 1-oct 2011 for 55lacs and invested the whole amount in another under construction project (71lacs),
whose possession will be given in dec 2013.

prevoius owner- Dec 2007-May 2011 (3yrs 5months)
My self -----------May 2011-Oct 2011 (1yr 5 months)
New property possession on--Dec 2013 (2yrs 2 months)

Now my queries are
will Short term capital gain applicable to me. if yes how much percentage of tax i have to pay and
what expenditures which i spent on the property can deducted from the gain.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 October 2011 Yes short term capital gain tax is applicable on the sale of the property.

The cost of purchase and the cost of improvement will be allowed as deduction.

The capital gain will be clubbed with your other income and the slab rate will apply to the total income.

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