Capital Gains Tax-Sec 54

B Mohan Rao (Employee) (25 Points)

15 July 2011  

Dear All,


I own a flat in noida from my own resources and through bank loan and i live here. During last FY (2010-11), in the month of Aug- Sept'10  i sold a flat in Patna (i was not living here and also it was not let out)  and had long term capital gains (after indexation) of about Rs. 5 lakhs (which amount i received in Dec'10-Jan'11).  I invested the enitre sale proceeds (including the entire capital gains) of the sold  flat and booked another flat in Lucknow (through Lucknow Dev. Authority) during the last financial year  (FY 2010-11) itself  in the month of March'11 (and paid the entire cost of flat as downpaymet from the sale proceeds). While filing return for this year , is it necessary for me use ITR2 and show the LTCG calculation and re-investment amount in the newly booked flat ? Further, as i already own another flat in Noida (where i live)  do i have to pay capital gains tax( irrespective of my investment in the flat which i booked in Lucknow)?

(I do not have much knowledge about finance/ i-tax etc.. so please help).

Thanks for your help.