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Capital gain

Nishant Saki (24 Points)

05 October 2019

when we sell the house property for 25 lakhs and buy 2 property for 24 lakhs. what will be the capital gain

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11 Replies

Priya Kashyap (Student) (7053 Points)
Replied 06 October 2019

Only one property bought shall be allowed for exemption from earned capital gain

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Kapadia Pravin (17264 Points)
Replied 06 October 2019

Capital gain will be calculated ----- Sales consideration less Indexed value of cost of a acquisition .

If entire capital gain is Invested into purchase of two properties (w.e.f. AY 2020-2021) then full Deduction under section 54.

1 Like

sabyasachi mukherjee (27734 Points)
Replied 06 October 2019

Sec 80EEA INTRODUCED FOR 2ND HOUSE W.E.F. JULY 2019 AND SEC 54 EXEMPTION WAS AVAILABLE FOR LAST 25 YEARS.

CALCULATE INDEXED COST OF ACCQUISITION AND DEDUCT FROM SALE CONSIDERATION.
THATS CAPITAL GAIN.
AVAIL EXEMPTION WITHIN A PERIOD 2 YEARS OR COMPLETED CONSTRUCTION OF HOUSE PROPERTY WITHIN A PERIOD OF 3 YEARS.
SEC 54 F.

Kapadia Pravin (17264 Points)
Replied 06 October 2019

@ Nishant

please don't be confused
Refer my earlier reply

_------
Sabyasachi 80EEA ??? for this query ?? for 2nd house ? amazing !!! Confusion ????

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Gaurav Sharma (155 Points)
Replied 06 October 2019

Now 2 house properties are allowed for deduction u/s 54 and agree with kapadia praveen ji

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Shivam Kashyap (Job) (268 Points)
Replied 06 October 2019

Whether deduction is available for both properties? Is this change made in budget 2019? Till last year only deduction for 1 year was allowed.

Kapadia Pravin (17264 Points)
Replied 06 October 2019

@ Shivam
You are right. The amendments have been made in Budget 2019

sabyasachi mukherjee (27734 Points)
Replied 09 October 2019

Yes @ kashyap
alterations enacted in the Finance Bill 2019.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 09 October 2019

1. As per the new proviso to sec 54 if the sale consideration is invested new residential house property then exemption can be availed for investment in 2 residential house property.
2. If the LTCG is less than Rs. 24 lakhs ( it will be, as the cost will be minimum of more than Rs. 1 lakh) then there will not be any Capital gain tax chargeable.
3. But the Income-tax website says that this proviso will be applicable only from 01.04.2020. As this was introduced in budget 2019 it should be applicable from 01.04.2019 and not from 01.04.2020.
4. In your case, if the selling and buying of property happen in the FY 2019-20 then, exemption u/s 54 should be applicable for both the residential house property. Resulting in no capital gains.
Please correct me if the above solution has an alternative view.