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Sale of house and purchase new one in same fy 2019-20

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CA Priyank Gandhi

Chartered Accountant

30 Points Posted on 27 September 2020

I have purchased house for Rs
6.00 lakhs in 2002. Sale the same for Rs 31.50 lakhs in February 2020 and purchase new one from the sale proceeds for Rs 28.00 lakhs. Pl advise me for implications of capital gain

Replies (2)

Quick Summary

This discussion clarifies capital gains tax when selling a home and purchasing a new one within the same financial year (2019-20). It explains that by claiming deductions under Section 54, you can potentially avoid paying capital gains tax. However, it's crucial to correctly disclose the sale consideration, indexed cost, and the investment in the new property when filing your Income Tax Return (ITR).

Jayendra

student

100 Points Posted on 27 September 2020

There won't be any taxable income in capital gain if deduction is taken u/s 54. Make sure to disclose correctly while filling ITR

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 27 September 2020

Yes, there is no Capital Gain tax after claiming Deduction under section 54.
But you have to disclose all this all things
like Sale Consideration 31.50 lakh less indexed cost = Long term capital Gain and that Gain invested in new property u/s 54 ect...