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Sold house property

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mayuri

Tax Consultant

194 Points Posted on 07 June 2023

Hi all,

One of the client sold property for 55 lakhs on March 15th' 23 and purchased the property on pre launch offer on April 30th' 23. As financial year changed What is the tax implications on this?

Replies (5)

Quick Summary

This discussion clarifies the tax implications when selling a property and purchasing a new one across different financial years. If the sold property was a long-term capital asset and a new residential property is purchased within the stipulated time, even with a booking amount paid and the rest deposited in a CGAS account, there may be no tax liability. However, if it's a short-term capital asset, tax deductions won't apply. All sale and purchase details, including booking amounts and CGAS deposits, must be declared in your Income Tax Return (ITR) to claim deductions.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 07 June 2023

If the agreement of newly purchased property is registered, deposit the capital gains amount (of sold property) in CGAS account, if not paid to builder of new property. No tax liability arises even if FYs be different.

B Durga Prasad

Student

125 Points Posted on 07 June 2023

The tax implications for selling a property for 55 lakhs on March 15th, 2023, and purchasing a property on April 30th, 2023.

Capital Gains Tax: The profit from the sale of the property will be subject to capital gains tax. The tax rate will depend on the holding period of the property (short-term or long-term) and the applicable income tax slab rates or the flat rate of 20% with indexation for long-term capital gains.
Exemptions: Certain exemptions, such as Section 54 and Section 54F, may be available to reduce the tax liability on the capital gains if the proceeds are reinvested in a residential property within the specified time period.

To learn more about Tax Implication on Immovable Properties click here
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rama krishnan

5751 Points Posted on 08 June 2023

If the property sold by you is long term capital asset, then there won't be any tax implications as said by Mr dhiraj sir as you have purchased a residential property within the stipulated time. but if it is short term capital asset, you won't get any tax deductions

mayuri

Tax Consultant

194 Points Posted on 08 June 2023

Thank you Sir, the property is not yet registered he gave some booking amount to the bulider.

While filing ITR can we show this property details?

rama krishnan

5751 Points Posted on 08 June 2023

Yes, you have to show all these details in ITR such as sale consideration of the property sold, booking amount paid to builder, amount deposited in cgas to claim deduction under section 54