Capital gain tax - is it retrospective?

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Vivek

Analyst

21 Points Posted on 28 January 2016

Hi, wanted to check on couple of things on how capital gain is taxed. We bought our 1st property in 2005 at 19L, and sold that property at 32L to buy a bigger house in 2010. In 2010, we bought a house at 60L (used 13L capital gain from 1st property) and borrowed the rest as Home Loan. Currently we are selling our property at 75L (given our inability to pay EMI - we have not defaulted on loan yet). Given the current deal will yield us 15L as capital gain on 2nd property from 2010 to 2015. How is tax calculated on capital gain? My second question is whether I need to pay tax now on capital gain I earned in 2010 (which I used to purchase second property). Lastly, would like to know how to save tax if we dont intend to buy property now? Thank you

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CA Mehul Chudasama

Chartered Accountant

593 Points Posted on 28 January 2016

You Can Invest Under Bond Specifeid U/s 54EC of Income Tax Act 1961 Upto Rs.50 Lacs Within 6 Month From Date of Transfer of Second House Property

This Money Is Block For 3 Years You Are Not Allowed To Sell This Bond For 3 Years And On An Average 6 % Interest You Will Get On This Bond

As You Said That You Have Purchased House Property In 2010 And Selling That in 2015 So You Are Transfer After 3 Years So You Don't Have To Paid Capital Gain Tax Of 1st Property

CA Mehul Chudasama

Chartered Accountant

593 Points Posted on 29 January 2016

one more thing the Second House you are selling within 5 years i don't have exact date as you have not mentioned above then whatever deduction you have claimed U/s 80 C in this 5 years is your deemed to be total Income so you have to pay tax on this deedmed income in current fy in which you are selling the house property