Long term capital gains

You are liable to pay long term capital gains, because although you have gift the sale proceed to your father but the apartment was in your name. You have earned 14 lacs in the sale of this flat, which becomes your income.

But to fnd out the exact long term capital gain, you have to check the year of purchase and year of sale, and using cost index inflation, you can figure you the exact tax liability.

If you are saying that you have technically not made any profit it is not correct. You have sold the property and have made capital gains. The money needs to used as specified in the income tax act i.e. for purchase of another house property or purchase of bonds and so on. You can only deduct the expenses you incurred in relation to such a sale like brokerage, stamp duty and so on. In this case you will have to calculate long term capital gains and pay the tax.

Agree with Mr. Praveen ..

u have not earned long term capital gain.suppose cost inflation index of year 2011-12 is 785 and in 2008-09 is 582.so the taxable ltcg is

46lakh*785/582=62 lakh-60 lakh=2lakh long term capital loss

so technically u have not made any profit.

Hi Durga,

No profit here u earned, but you had a tax benefit and can claim by way of showing loss from sale of House Property in Head of Capital Gain - Long term capital loss..

Best regards,

Karthikeya...