Query on Taxable Capital Gains

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Can someone please help me to solve this question. I got this question from the model question paper. The answer is option A. Mr. Vikram sold his old residential house in May, 2017 for Rs.25,00,000. Long-term capital gain arising on
transfer of old house amounted to Rs.8,70,000. In December, 2017 he purchased another residential house
worth Rs.4,50,000. The new house was however, sold in May, 2018 for Rs.14,00,000 (stamp duty value of
the new house was Rs.13,00,000). What will be amount of taxable capital gains in the hands of Mr. Vikram
for the A.Y. 2018-19 and 2019-20?

(a) Long term capital gain of Rs.4,20,000 in A.Y. 2018-19 and short-term capital gain of Rs.14,00,000 in
A.Y. 2019-20

(b) Long term capital gain of Rs.4,20,000 in A.Y. 2018-19 and long term capital gain of Rs.4,50,000 and
short-term capital gain of Rs.14,00,000 in A.Y. 2019-20

(c) Long term capital gain of Rs.4,20,000 in A.Y. 2018-19 and long term capital gain of Rs.4,50,000 and
short-term capital gain of Rs.9,50,000 in A.Y. 2019-20

(d) Long term capital gain of Rs.4,20,000 in A.Y. 2018-19 and long term capital gain of Rs.4,50,000 and
short-term capital gain of Rs.8,50,000 in A.Y. 2019-20

 

Replies (2)

Option A is the RIGHT answer as the new assets is sold within the lock in period so the COA of such assets shell be reduced by exemption amount claimed earlier (Rs. 4,50,000 - Rs. 4,50,000) 

Capital Gain on New Assets 

FVOC 14,00,000

Less : COA (Rs. 4,50,000 - 4,50,000 ) Nil 

STCG 14,00,000  

(a) Long term capital gain of Rs.4,20,000 in A.Y. 2018-19 and short-term capital gain of Rs.14,00,000 in A.Y. 2019-20

OPTION A is the right answer

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