Stcg on sale of residential flat: any way out?

Tax planning 572 views 3 replies

yashsr

2285 Points Joined April 2011

Hello,

I purchased a residential flat in 2010. I want to sell it now. Hence, the nature of capital gain will be short term. Because of this, I'll be taxed @ 30%(my tax slab). I'll get no indexation benefit. Plus I will not be able to take advantage of 54, 54EC or 54F.

Now, is there a way out for me to avoid being subject to this huge capital gains tax? Is there any other exemption which can be claimed evenfor Short Term Capital Gains from Sec 54 to 54H or whatever? Any other suggestion to reduce tax liability?

Replies (3)

@CS Siddharth Bumb.

B.Com CA Final CS

5270 Points Joined September 2009

dear according to my knowledge there is no way out.. you have to pay taxes as per your slab rate.... :-(

RAVI KUMAR GUPTA

STUDENT

46 Points Joined March 2012

Hello Sir ,

In my Opinion also there is not any legal ground for handling such a situation , but technically in my opinion there is a way - IF WE CONSIDERED THE ABOVE INCOME UNDER THE HEAD PGBP AND NOT UNDER CAPITAL GAINS , MEAN TO SAY THAT WE ARE CONSIDERING THE SALE OF RESIDENTIAL HOUSE AS A BUSINESS OF TRADING IN RESIDENTIAL HOUSE , NOW WE CAN CLAIM DIFFERENT EXPENSES AGAINST SUCH A SALE AND CAN PREPARE PROFIT AND LOSS ACCOUNT FOR THAT BUSINESS.....

THIS WILL OBIOUSLY REDUCE THE INCOME AND AS SUCH TAX LIABILITY

yashsr

2285 Points Joined April 2011

Originally posted by : RAVI KUMAR GUPTA
	Hello Sir , In my Opinion also there is not any legal ground for handling such a situation , but technically in my opinion there is a way - IF WE CONSIDERED THE ABOVE INCOME UNDER THE HEAD PGBP AND NOT UNDER CAPITAL GAINS , MEAN TO SAY THAT WE ARE CONSIDERING THE SALE OF RESIDENTIAL HOUSE AS A BUSINESS OF TRADING IN RESIDENTIAL HOUSE , NOW WE CAN CLAIM DIFFERENT EXPENSES AGAINST SUCH A SALE AND CAN PREPARE PROFIT AND LOSS ACCOUNT FOR THAT BUSINESS..... THIS WILL OBIOUSLY REDUCE THE INCOME AND AS SUCH TAX LIABILITY