Few years back, i sold a land and bought an apartment using the capital gain amount to save tax under sec 54F. Now, after 3 years, i want to sell the apartment. For capital gain calculation, what is the base amount considered ?
land was bought for Rs 78000/- in 2003
land sold for 25 lakhs in 2012
Apartment bought for 25 lakhs in 2013
Apartment being sold for 32 lakhs now
Is the capital gain calculated as 7 lakhs (32 - 25) ? or
is it ~31 lakhs (32 lakhs - 78000) ?
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Capital gain on sale of residential property
Replies (7)
As per Engineers calcualtion LTCG be 32-25 lakhs, .......... but as per our students it is just 1.1 lakhs............ calculation follows..........
You can avail the benefits of indexation if the resulting capital gain is of long term nature. In this way, you can reduce the amount of capital gain.
First you have to find out the indexed value of your cost(i.e. 25 lakhs) , the calculate the gain in the usual manner.
First you have to find out the indexed value of your cost(i.e. 25 lakhs) , the calculate the gain in the usual manner.
capital gain is 32-25=7, we cannot avail the benefit of indexation as it is sold with in 3 years.
no qyery says after 3 years
so indexation is allowed.
so indexation is allowed.
no qyery says after 3 years
so indexation is allowed.
so indexation is allowed.
As per the query.. it is not even sold !!! He only wants to sell it !! Further the budget for 2017-18 has lowered the holding period for gains to qualify as long-term in the case of house property to two years from three years
LTCG tax from earlier land sale (~25 lakhs) was not paid as i claimed under 54F. Since it was utilized to buy the apartment, wouldn't the base rate for capital gain be buy price of first land (78,000/-)
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