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Capital Gain
A site purchased in 1997 for Rs 110000, constructed house in 2002, with an estimated of Rs 800000. The House is sold for Rs 3000000 in 8/2017. In March 2017 (before sale of old house) the new constructed house was bought for an estimated cost of Rs 5600000 (Bank finance Rs 4950000 + Own contribution (savings) Rs 650000). Please advise the capital gain tax implications, whether to pay capital gain tax, since the new house bought within one year of sale of old house. For exemption of tax will it be restricted to own contribution of Rs 6500000 for purchase of new house.
Replies (12)
no capital gains in your case
no capital gains in your case
Thank you very much
you are welcome
No you will attract capital gain tax.... You have sold the house after purchasing another house..... Capital gain Exemption under 54 can be claimed only if a new house is purchased after the sale of old house within a period of 1 year......
as per section 54b the period for purchase of new house is within 2 years not 1
54 not 54b
but exemption under sec 54 can be claimed if the purchase of said property takes place only after sales ......here in this case it's opposite....in this case the person has purchased a property and then sold another property...hiw can he claim
but exemption under sec 54 can be claimed if the purchase of said property takes place only after sales ......here in this case it's opposite....in this case the person has purchased a property and then sold another property...hiw can he claim
ha then one year period
Section 54 reads as "........the assessee has within a period of one year before or two years after the date on which the transfer took place purchased,........"
@ shreekant can u be a bit more elaborate???
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