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LTCG from house property

05 September 2022

Dear Sir,

I have sell residential house of Rs.55,00,000/- in F.Y. 2021-22 which was purchase in F.Y. 2014-15 of Rs.47,00,000/-.

then , for tax saving purpose ,can I bought residential house of Rs.8,00,000/- only (capit gain portion) or will require full amount of Rs.55lakh investment mandatory.

please guide me.

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3 Replies

CA Aakarsh Jain (CA) (10223 Points)
Replied 05 September 2022

You do not need to invest anything as your indexed cost of acquisition is above 62 lakhs so you have capital losses of Rs 7 lakhs which you can carry forward and take the benefit in subsequent years. For detail understanding check your inbox.

5 Like

CA Rashmi Gandhi (Chartered Accountant) (86280 Points)
Replied 05 September 2022

Sir you sold the property after 2 years of holdings, so the CG will be long term and indexed cost of acquisition is used for calculating LTCG.

In your case Indexed cost is 6149167 i.e. 47lakhs*317/240 and Long Term capital loss will be 649167 i.e sales consideration less indexed cost.

8 Like

CA Raj Doshi (Practising CA) (8795 Points)
Replied 06 September 2022

Agree with all previous comments. Please note, if you have not filed your return within the due date, then you will not be able to carry forward these long term capital loss.

3 Like