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Stcg - sale of property

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Vishy

Founder

29 Points Joined June 2015

Hi,

I am contempleting selling the existing and purchasing a bigger flat in the same society. I purchased the flat about 12 months ago.

I need to understand my STCG Liability.

Cost of Acquisition: 1.2 Cr (Incl. of Base Rate (96L) + Stamp Duty (4L) + Amenities (5L) + Woodwork/Elect/False Ceiling (15L). 73L is on loan rest was self funded by savings & near n dear ones.

Let us assume I am able to sell it off for 1.4 Cr & purchase the other property for 1.5Cr (which includes base rate + stamp duties + Amenities)

Will my Tax Liability by 1.4 - (96L+4L+5L) = 35 Lakhs?

Assume I am in the 30% tax bracket based on my existing taxable salary.

Will I be liable to pay 30% on 35L ? If yes, then how better will I be off, holding the property for another 24 months- to make it 36 months? - keeping in mind indexing & other gyan comes in? - assume I sell it on the 37th month of possession.

Many thanks for your advise on this.

Regards,

Replies (1)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If sold within 36 months (STCG) = sale consideration - cost of acquisition - cost of transfer (if any). STCG = 1.4 cr - 1.2 cr = 0.2 cr. Tax payable is 30% of STCG.
If sold after 36 months (LTCG) = sale consideration - ICA - cost of transfer (if any) and tax payable is 20% on LTCG. If u buy another house on selling the existing house, then investment in the new asset or LTCG, whichever is lower is exempt u/s 54. This exemption is available only in case of LTCG.