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LTCG on Property sale whose indexed purchase value is more than realized sale

Tax queries 235 views 2 replies

Dear All,

 I purchased a residential property in FY 2008-2009 in Bengaluru for Rs. 22L. I have spent additionally 6 L for improvements. some messonery work, flooring ,furniture etc. . I have sold it in FY2022-2023 at 57L

Now as per indexation COst of my property is  = 22* 331/137 = 53.15 L

similarly  indexed cost of improvement  = 6 * 331/137 = 14.5 L

My sale price 57L - 53.15-14.5  = 57-53.15-14.6 = -10.65      is negative.

So do I need to pay LTCG on this sale ? as I am actually not gaining it is loss to me.

Please guide me.

 

Replies (2)
No You will have to pay no tax, as it's a House property loss which will be carried forward and will be set off against future income. Only condition is that Income Tax return should be filed on or before due date

No question of LTCG, if indexed cost is more than sell value/FMV.


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