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Guidance for capital gains after selling house

others 150 views 1 replies

Anant Narayan Joshi

Free Lance consultant

25 Points Joined February 2014

sir, I built a house on an NA plot in Co-operative Housing Society in 2002 in Pune Corporation limit.

Due to non-coperation from Architect and Contractor, I could not get Completion certificate .

I done Improvement by adding about 42 Sq.Mt. constructuion in 2015-16,with due approval from Pune Corporationand just got completion for entire construction in Dec.2015.

Now I wish to sell this property in next few months.

What will be my Tax Liability after selling this house.

I wsh to purchase either ready house of purchase aplot and construct a house.

Expecting a reply .

A,N,Joshi .PUNE

9595715673

Replies (1)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

Long term capital gain = sale consideration (sale value) - Indexed cost of acquisition - Indexed cost of improvement - expenses of transfer
If you invest the capital gain proceeds in another house property, you can claim exemption of such gain u/s 54. For this, time limit for acquisition of new house is 1 yr before or 2 yrs after the date of sale. For construction, time limit is 3 yrs from the date of sale.