Long term capital gain - residental house

Sirs,

My Brother made sale of house property on Jan 2013 @ 40 lac where it has a loan of 2.5 lac in private institution (DHFL) (construct the house previously it is a plot worth @ 3 Lac in December,1996) , where he purchased a new house 29 lac and extended the building @ 8 lac in March 2013. Now How much tax he has to pay? Kindly help in this regard and any excemption is there? (Pls. Mention Income Tax Section also).

Thanking You in advance.

Replies (5)
he can hv a tax exemption to the extent , he had spent on purchase n extention of new house .
provided he had made puchase with in 3 year from d date of sale ..
Dear sir, firstly you have to see what is your cost of acquisition of previous house and should find out capital gain on it. After that we will use section 54 in your case to give use the tax relaxation. Under this if you have utilised the amount in construction or purchase of a new building the gain will get exempt if done in period specified as per sec 54. I hope it will solve your problem or you can do a pm to me. Regards

To compute capital gains, one requires the following details

cost of purchase of flat sold and year of purchase

sale price of flat sold and year of sale

cost of purchase of new flat and year of purchase

 

yes you have deduction clam u/s 54.
 

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