Short term capital gain tax:sale of house property

1. Short term capital gain will arise and it will be taxable.

2. Benefits taken under sec 80C will be reversed if the house is sold witin 5 years of purchase.

Agree with Manish Sir

it's better not to sell the home for 3 years ...in that way your capital gain would be atleast long term.......

Agree with learned member's

As u said you are planning to buy a new house,so it's wise to sell your property after 3 years so that you can claim exemption under section 54 as stated below

Long Term Capital Gain from the Transfer of Residential House Property (Section 54)
The exemption under the Section 54 is available only an individual or a HUF who transfers (or sells) a residential house/property that results in a long-term capital gain, and then invests the amount of gain in acquiring a new residential house. This exemption is available subject to fulfillment of the following requirements:
(i) The transferor shall be an individual or the HUF,
(ii) The asset to be transferred must be of long-term capital asset, being buildings or lands appurtenant thereto, being a residential house,
(iii) The income from such residential house shall be assessable under the head "Income from House Property",
(iv) The transferor assessee should purchase a residential house in India within a period of one year before or two years from the date of transfer or construct a residential house within three years from the date of the transfer of the original house. (Construction must be completed within these 3 years.), and
(v) The new house property purchased or constructed has not been transferred within a period of three years from the date of purchase or construction

Amount of Exemption. The amount of exemption under section 54 is
 

• Equal to the amount of the capital gain if cost of new house property is more than the capital gain, or
• Equal to the cost of the new house property if the cost is less than the capital gain

Thanks everyone!

If I take 50 lacs in cheque & remaining 10 lacs in cash would there be any problem with the IT department?

My buyer is saying that you cannot do that because you had already bought the flat in that amount 1.5 yrs ago and you need to show appreciation else you will come under scrutiny.