Dear Team,
Greetings of the day.
Had some query/ needed some clarificatin regarding Short term Capital Gains/Large Term Capital Gains.
We sold a house purchased 10-15 years ago & within a year invested the sale proceeds for buying a new residential house.
So, now If I sell the new home purchased within next 2 years, will the transaction attract STCG or LTCG?
For example:-
If I bought a residential house property for *10 lakhs* in January 2010 & sold it for INR *12 lakhs* in June 2021 for buying a new residential house property for INR *15 lakhs* & the newly purchased RHP If we sell in July 2023 (i.e., after 2 years) for INR *16lakhs* for the purpose of buying a new house , so will this sale of my newly bought house attract any STCG/LTCG? If I re-invest the sale proceeds for buying a new house.
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Implications of Capital Gains for House Property
Replies (3)
Transfer of capital asset leads to capital gain.
First of all. if you had claimed exemption u/s. 54 of IT act for AY 2022-23, you cannot sell the newly purchased HP before 3 years of its purchase. Otherwise, you will be taxed for the LTCG claimed earlier.
If the new house is transferred before 3 years from the date of its purchase, then, the cost of the asset will be reduced by the capital gains exempted earlier for computing the capital gains.
LTCG or STCG will depend on the period of holding of the new house.
In case of any further queries, kindly mail me at casoravgupta @ gmail.com
Thanks & Regards
CA. Sorav Gupta
(Practicing Chartered Accountant)
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