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
CAclubindia
