Long term capital gains tax

Your Old house is long term Asset (i.e.you are holding this asset for more than 36 months).

So you have to calculate Indexed Cost (Based on inflation Index announced by CBDT for each year).

I Think If you calculate Indexed Cost you will not have any gain you will be on Loss.

There will not be any question of Tax.

thanks for the prompt response.. just in case the indexed value is yeilding some marginal profits and I use it to repay the loan, then, is that exempted from the capital gains tax. Wanted to get some clarification on the rules of this expemtion.

You Can Get exemption u/s 54, Provided you satisfy the following Conditions:

01. Asset should be residential House and Should be Long Term Asset - In your case I think Yes.

02. You should invest in another property One year Before or Two Years After the date of Sale - You whould have invested on or after October 2011.

Instead of taking Booking date take the date on which you got the possession.

The Gains arising from your Old House would be exempt under Section 54 as the Old House is a Long Term Capital Asset and both the Houses are Residential