Capital Gains Tax on Sale of House

Tax queries 624 views 2 replies

Sam

Asst

35 Points Joined March 2011

I will be getting 25lacs(by Cheque or Electronic Transfer in the bank account) from sale of a flat. Now can I invest 20 lacs to buy another flat and keep remaining 5 lacs to invest in house hold items, also to pay stamp duty and registration charges. Will i be taxed on 5 lacs. And if yes What %. Or I have to invest entire 25 lacs to purchase another flat.

First flat purchase value 1.50lacs at the time of purchase. Year was 1989.
Place of Property - Pune

First Property was purchased on 15th, June 1989.
and proceed from sale of flat will be received in April, 2011

Mother is owner she will mention in sale deed 75% from sale will go to me. Will be Electonically Trasnfer to the bank account. Since other brother has a house of his own.

Replies (2)

Pankaj Arora

Learner

3134 Points Joined September 2009

You have to invest entire amount of LTCG in purchasing new house u/s 54 within two year or 3 years for construction.

AVIJIT

CA FINALIST

370 Points Joined January 2011

The tax calculations will be done not for you but for your mother as she is the owner.1.5Lakhs will be indexed 89-90 to 10-11 as sale made in 10-11. This amt will be deducted from the net sale consideration (Sale price-Stamp Duty-Registration Charges-other Charges or fees for sale). The result will be the LTCG. You will have to invest this amt in Purchase of new flat to get full exemption under Sec54.