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LTCG for 2 transactions

camahesh (CS) (57 Points)

10 December 2019

PLEASE GIVE 2 MINUTES TO UNDERSTAND THEN ANSWER.................................................I had sold house No 1 .... in July 2018 in which i had Capital Gain/ LTCG of Rs 50 Lakh in July 2018 i purchases new house No 2 ......for Rs 70 Lakh and got exemption of Rs 50 Lakh tax.................................But now i am getting offer by some one to sell same house No 2 for Rs 95 Lakh in in September 2020........................................so as i have taken tax exemption earlier so what would be my tax liabity as i am selling house No 2 ....so early .....

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5 Replies

Rohit Toshniwal (42 Points)
Replied 11 December 2019

No
purchase House should keep for 3 year

1 Like

rama krishnan (12234 Points)
Replied 12 December 2019

The cost of acquisition of the house no. 2 will be reduced to an extent of deductions claimed I. e. 50 lakhs. while calculating capital gains on sale of house no. 2,the cost of acquisition to be taken as 20 lakhs instead of 70 lakhs and the capital gains will be of Long term

1 Like

Shivam RC (Student) (23683 Points)
Replied 14 December 2019

No. The new house has a lock in period of 3 years.

Kapadia Pravin (17249 Points)
Replied 15 December 2019

There is no lock in period as far as sale of new asset is concerned.

The condition is to hold it for 3 years but in case if it is sold before that than whatever deduction was availed under section 54 shall be charged to tax in the year in which new asset is sold. Take care of section provisions.