Short term capital gain (stcg) on property calculation

You cannot capitalize interest paid on housing loan. so your cost of acquisition comes to Rs.30,00,000(27,50,000+2,50,000).

So the calculation goes like this...

Sale consideration    -  Rs. 38,00,000.

Less: Cost of acquisition - Rs. 30,00,000

Short term capital gain  -  Rs. 8,00,000.

You can claim interest on housing loan as deduction under the head 'Income From House Property'.

Thanks Siddharth.

So Rs. 8,00,000 will be taxable as per Salary Bracket; i.e. 20%. Is that correct?

Yes, Rs 8,00,000 will be taxable as per normal slab rate under which u fall.

Ok, I have done some home improvement, but how can I prove it? Do I need to submit some proof for it?

By the term 'improvement', Ankur refers to capital additions like.. if you have constructed one more floor or you may have constructed fence around your house or something like that... Improvement does not include repairs, painting and all. Improvement should be of capital nature whose benefit is for more than one year. Improvements does not include revenue expenditures.

Ok, understood. Any ways to save it? Say if I invest in another property within this financial year, is it still taxable?

That provision applies only to long term capital gains and not short term capital gain... In your case its short term capital gain... you cannot avail this benefit !

Ok, got it. Thanks a lot. Appreciate all your feedback.

Hi thanks for sharing the valuable information on stcg. i have few queries regarding this tax as follows:

1) in case we are getting house loan benifit ( principle +interest rate of loan) in ITR , is it also be included in the short term gain calculation?

2) while buying the flat we usually pay PLC, Car parking charges . all these expenses also included while calculating cost of acquisition ?

thanks in advance

also do i need to attach proof with the ITR form of sale deed of both parties ( sale /Buy)

thanks and regards

So you mean to say if any STCG come it's fully taxable no chance to avoid it?

Hello, I had bought a mhada row house in nov 2013  which I am planning to sell in march 2016.  I bought the row house for Rs. 2800000 + Rs 2,00,000 as Stamp Duty & Registration  which comes up to Rs. 30,00,000. So the flat has cost me Rs. 30,00,000. Let's say I sell the Flat for Rs. 38,00,000 + Rs. 2 50 000 as stamp duty and registration.  I would like to know how STCG is calculated.  Any help is appreciated. Whether there is any way to minimus the tax on it?