Sold house property

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Tax Consultant
297 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?

 

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On 07 June 2023 at 18:42 Report
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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.

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SEO Sai Gr. Hosp.
212460 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.

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On 07 June 2023 at 19:25
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Student
175 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.

  1. 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.

  2. 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
For more detailed information, visit Swipe Blogs

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On 07 June 2023 at 19:27
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12244 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
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On 08 June 2023 at 02:10
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Tax Consultant
297 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? 

 

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On 08 June 2023 at 06:38
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12244 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
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On 08 June 2023 at 06:52

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