LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Short term capital gain

Sunny Tayal (mkldgblfkg) (73 Points)

08 April 2013

Dear Sir

A person Individual has purchased the property in Nov 2011 of Rs. 9,00,000 (Registery Value) in Delhi and he has planned to sell the property of Rs. 11,00,000 (Registery Value) in April 2013.
What is the Capital Gain and how can he save his capital gain?

Please reply

Regards
Sunny Tayal

Reply
Follow
Share

9 Replies

Ravi Dasija (CA) (215 Points)
Replied 08 April 2013

Dear Sunny

Since the property is being sold within 3 years, it will be considered as STCG. Capital Gains will be Rs. 2,00,000/- (Rs. 11,00,000- Rs. 9,00,000), this will be added to the income and be taxable as per the slab rates.

Since it is short term no exemption can be claimed, the only way is if at all there is any b/fd capital loss then it can be set off against this gain.

Other Suggesstions welcome.

Thanks

Ravi Dasija

1 Like

Sunny Tayal (mkldgblfkg) (73 Points)
Replied 08 April 2013

Thank You Very Much.

Sunny Tayal (mkldgblfkg) (73 Points)
Replied 08 April 2013

Dear Sir

Thank You Very Much for reply,

Can he invest this 11 lakh in anywhere or there are some restrictions?

Regards

Sunny Tayal

Rahul Suneja (CA-Final, CS-Exec) (215 Points)
Replied 08 April 2013

If you want to save the capital gain then it is advisable to sell the property after one year resulting in long term capital gains. In that case the assessee can invest the amount as specifed u/s 54EC or 54 and can claim exemption for the amont equal to the to the amount invested.

CA Ashish Gupta (Internal Audit GST Balance Sheet Income Tax ) (55 Points)
Replied 08 April 2013

Originally posted by : Rahul Suneja
	If you want to save the capital gain then it is advisable to sell the property after one year resulting in long term capital gains. In that case the assessee can invest the amount as specifed u/s 54EC or 54 and can claim exemption for the amont equal to the to the amount invested.

a wrong answer. now the assesse is in 2013, how can it b after one year.

(Guest)

Mr. Ravi has given a perfect answer to your query on short term capital gain taxability

1 Like

Ravi Dasija (CA) (215 Points)
Replied 09 April 2013

Originally posted by : Sunny Tayal
	Dear Sir Thank You Very Much for reply, Can he invest this 11 lakh in anywhere or there are some restrictions? Regards Sunny Tayal

Dear Sunny

There is no restrictions on using the funds received but however no tax benefit will be available to the assessee.

Warm Regards

Ravi Dasija

Sunny Tayal (mkldgblfkg) (73 Points)
Replied 10 April 2013

Thank you very much.

Rahul Suneja (CA-Final, CS-Exec) (215 Points)
Replied 10 April 2013

Originally posted by : CA Ashish Gupta
	Originally posted by : Rahul Suneja If you want to save the capital gain then it is advisable to sell the property after one year resulting in long term capital gains. In that case the assessee can invest the amount as specifed u/s 54EC or 54 and can claim exemption for the amont equal to the to the amount invested. a wrong answer. now the assesse is in 2013, how can it b after one year.