My relative's father had bought a flat for Rs50000/- in the year 1983.
In the year 2008 the building was being redeveloped. Relative got the possesion of the flat after 2years i.e May'2010.
The relative want's to sell the flat in April'2011 at a price of Rs 60 lacs. The proceeds from the flat i.e 60lacs will be reinested to buy a new flat within i year of sale of old flat:
Relative does not own any other flat.
Queries:
1. Is it long term or short term gain?
2. As they are planing to buy a new flat will the capita gain be exempted ? If not then how will the tax be calculated?
Request an early reply.
CAclubindia
