i am selling my residential flat which was purchased in year 2005 at 6 lacs, the proposed sale price is 27 Lacs, i have already booked a new flat which costs 45 lacs , i will be using the amount which i will be getting from selling of the old flat. My question is after carrying out this transaction will it attract any income tax ?
Thanks , sameer
Dear, Your Residential house is long term capital asset as it is hold by you for more than 3 years. You can get the indexation benefit also. But in case it is seen that you are going to invest more than the Capital Gain (27-6) to buy new property. If we go by Section 54, then entire capital gain will not be taxable.
You need to file your return by 31st July 2013 as you are going to sale your property in this Fiscal year.
Thanks
Mihir doshi
CCI
Pro
CAclubindia
