Sale of property within 3 yrd

Dear Rupesh

first of all you should know that every exemption whether u/s 54, 54F, 54EC etc. is available to long term capital gain only and you have short term capital gain in your case so there is not exemption available to you if buy an another house after selling first house.

 

secondly there is short term capital gain to you which is taxable at normal rate of income tax slabs.

 

thirdly as you explained in your example that you have paid some amount as interst. here i would like to say that such interst will not be added to cost of house property.

 

apart from above mentioned facts you are right.

Hi,

Thanks for the information. It means My property Cost will be calculated as Purchase Price + Registration & Stamp Duty Charges i.e.(1560000 + 91200 = 1651200). Please confirm. So my STCG will be Rs.578800. Right? and what about Interest paid till date on home loan is it also added to STCG value or not. and I also show exemption of principal payment & Interest paid through Home loan. So that exemptions  also withdrawn or I can use that exemption? 

Thanks In advance.

Kind Regards

Rupesh

 

you need not withdraw the exemption. the above mentioned exemtion is available to you even you sold the flat. 

Hi,

Thanks for the clarification. Ok , it means I can use that exemption..So my calculation of STCG (Rs. 578800) is right. 

Kind Regards

Rupesh