Hi Experts. I would like to ask one query regarding long term capital gain.
One residential plot was allotted in year 2010 and the amount was paid in six yearly installments starting from year 2011. The amount paid to the Urban Authority was Approx Rs. 21.00 lakhs. Enhancment amount of Rs. 2.91 lakh (+ interest) yet to be paid. Now planning to sell the plot for which the enhancment amount as well as conveyence deed expenses (approx 2.00 lakh) will be borne by me. The sale proceeds would be Rs. 70.00 lakhs.
Besides this I owns a house which was bought in year 2016 (Registered deed in 2016) and also a house building loan of Rs. 50.00 lakh is outstanding as on date. The completion certificate of the house was issued in year 2019 and I am residing in that house. Now my queries are :
1. If I sells plot, that what type of capital gain will be levied on me i.e. STCG or LTCG (date of allotment will be considered OR date of conveyence deed will be considered?
2. If I re-pay the loan of my house with the sale proceeds of plot, Will I be exempted from paying any capital gain?
I hope I made myself clear in asking the query. All are requested to kindly advise me and also give me section(s) or citation of relevant judgments in support of their advise.
Thanks & Regards
P K Gupta
CAclubindia
