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Ltcg on sale of residential property

vishal korade (article) (92 Points)

27 June 2017

In case of ltcg on sale of residential flat, if property purchased in fy 2007-2008, for Rs.15.71 lacs,+72000 as registration cost & flat is sold on fy 16-17, for Rs.34.51lacs(stampable value 55.6lacs), what would be the tax on it & what would be investable amount in NHAI bonds/REC????

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3 Replies

rama krishnan (12234 Points)
Replied 27 June 2017

total cost of acquisitions - rs. 16.43 lakhs
indexed cost - 16.43*264/129=33.62 lakhs
total sale consideration - 55.6 lakhs
ltcg - 21.98 lakhs

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CA Prashak Kumar Goyal (Pratice) (192 Points)
Replied 01 July 2017

Total cost of acquisitions - rs. 16.43 lakhs
Total sale consideration - 55.6 lakhs

Indexed cost - 16.43*1125/551=33.54 lakhs

LTCG - 22.06 lakhs

As per section 54E exemption for Investment in NHAI bonds is restricted to 50. but it should be made withing 6 six months from the date of transfer or date for filling ROI whichever is early. however, in this case investment can be made upto rs 22.06 lacks to avoid tax.

chandni mittal (internal system controller) (43 Points)
Replied 02 July 2017

Costo of acquisition is ₹ 16.43 lak so index cost is 16.43*1125/551=33.55 laks is less from sale proceeds i.e ₹55.6 laks so ltcg is₹ 22.05 laks. This amt can be invested in NHAI bonds within 6 months of selling. But the intt amount on these bonds is taxable.