Capital Gain on redeveloped flat sold within i year

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.

Replies (1)

i am assuming father (owner) wants to sell this flat instead of relatives ...

it will be LTCG if you invest this LTCG in buying new flat this LTCG will exempt u/s 54 or any left amount if remaing will be taxable...

you have to invest this LTCG within two years or within 3 years for contruction .....you have to deposit this LTCG in capital gain account scheme in any nationalized bank within 6 months before due date of filing ITR...

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