Query on Taxable Capital Gains

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)
Quick Summary
This discussion addresses a query regarding taxable capital gains for Mr. Vikram. It details the sale of his old residential house and the subsequent purchase and sale of a new one. The core of the question lies in calculating the capital gains for Assessment Years 2018-19 and 2019-20, considering the sale of the new asset within a specific timeframe.

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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