Capital gain wrt sale of flats

you haven't mentioned the cost of Acquistion of the Asset..  without the knowledge of which the answers may be subject to deviations

Dear Sir,

Thanks for your reply

Cost of Acquisition of the asset is Rs. 94,000. 

Market value of the asset = Rs. 10,000,000 approx.

Thanks

-A

if ur taking dep on that flat u will be having stcg of 1 crore. invest in new house within 3 years . till that park funds in cap gain scheme

Dear Sir,

Thanks for your reply. We want to clarify that we will be purchasing the flat first with our own money or by loan.

After the possession of the new flat, we will be selling our old flat, since we dont have any other flat to stay.

Kindly advise, how to avoid the capital gain tax.

Thanking you

Regards,

-A

Even if the asset is a depreciable asset, you can take exemption after buying new flat (must be used for residential purposes and hence no depreciation would be chargeable on the new flat purchased) under section 54F.

There are several judgements in the favor of assessee on this matter

LTCG will be (Sale Consideration) minus (Value of the depreciable Block as on date)

Benefit of Indexation may not be available