Long term capital gain

Dear Expert Members,

I have one query, for which I need a sloution from expert members.

I purchsed one builders semi-finished flat having area 1000 sq ft in Nov'2002 at Rs.4,50,000/-.  I paid 58,500/- satmp duty & approx Rs 75000/- on furnishing.

I am now selling this flat in 2012 at Rs 42,00,000/-, but as per government area circular rate, stamp duty has to be paid on approx Rs. 50,00,000/-. Thus Registering Value will be more than sale consideration.

My first query is, what will be long term capital gain ?(A). Rs. 50,00,000/- less indexed purchase price or (B). Rs. 41,00,000/- less indexed purchase price.

Same time I am also purchasing property within 2 months. My secong query is (A) I have to invest total sale consideration or (B) only total Long Term capital Gain to avoid income tax on LTCG.

My Third query is can I purchase new property jointly with my wife to save stamp duty, though wife is not contributing any funds.

Please help in resolving above.

A. K. Jain

Replies (2)

(1) The sale consideration will be Rs.50,00,000/- 

(The income tax act says "where the value of consideration received is less than the value considered for muncipal valuation then such muncipal valuation has to be taken"

 

(2) The amount invested in the new property shall be allowed as deduction. Hence, you will have to invest upto the amount at which you would want to claim an exemption.

 

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