Stcg on sale of residential flat: any way out?
This query is : Resolved
24 June 2012
Hello,
I purchased a residential flat in 2010. I want to sell it now. Hence, the nature of capital gain will be short term. Because of this, I'll be taxed @ 30%(my tax slab). I'll get no indexation benefit. Plus I will not be able to take advantage of 54, 54EC or 54F.
Now, is there a way out for me to avoid being subject to this huge capital gains tax? Is there any other exemption which can be claimed even for Short Term Capital Gains from Sec 54 to 54H or whatever? Any other suggestion to reduce tax liability?
I purchased a residential flat in 2010. I want to sell it now. Hence, the nature of capital gain will be short term. Because of this, I'll be taxed @ 30%(my tax slab). I'll get no indexation benefit. Plus I will not be able to take advantage of 54, 54EC or 54F.
Now, is there a way out for me to avoid being subject to this huge capital gains tax? Is there any other exemption which can be claimed even for Short Term Capital Gains from Sec 54 to 54H or whatever? Any other suggestion to reduce tax liability?
CA PARAS BAFNA
(Expert)
24 June 2012
The best suggestion is do not sell it right now. Keep it for complete 3 years.
.
.
CA PARAS BAFNA
(Expert)
27 June 2012
Bonds can be purchased but that is of no use for exemption as the capital gain is short term. Bonds will help only when the case is of LTCG.
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