Last Chance: Get 10% OFF on CAclubindia Pro Subscriptions. Subscribe Now!

Income tax on capital gain from sale of property

307 views 1 replies

Jatinder Singh Bedi

38 Points Posted on 10 June 2019

We have a property in unauthorized colony bought for 1.96 lacs in 1990 on POA in my mother's. Same got registered to my name in 2019 April for Rs 3000000 on which registration fees of 2 lacs was paid to registerar. We are planning to sell the particular property for 70 lacs in July 2019.

1. How the capital gain will be calculated. Do we consider date of purchase as 1990 or 2019.

2. How tax will be calculated and any way to save tax

3. If I repay the housing loan on other house purchased in 2016, will same be considered in tax calculation

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211926 Points Posted on 11 June 2019

Every exemption is based on LTCG.

For short term CG only tax liability will arise.

For LTCG minimum holding period should be 2 years.

For the said property, main criteria is whether ownership is of just few months or earlier to 2001.

Apex court has discarded transfer-ship rights based on POA.

So, any justification of holding period is based on possession letter, payments based on cheques or banking mode, registered sale agreement, etc. by virtue of the same the transfer-ship got completed in 2019. So, get it verified through an advocate, and take call.