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Sold house property

mayuri (Tax Consultant) (238 Points)

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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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 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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B Durga Prasad (Student) (175 Points)
Replied 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 (12234 Points)
Replied 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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mayuri (Tax Consultant) (238 Points)
Replied 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 (12234 Points)
Replied 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