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Tax implications of selling residential plot

Tax queries 775 views 4 replies

Hello Everybody,

Recently  I  Sold  residential  plot  in Bangalore, which I bought   in 2003.  Let  me know understand  the   tax implications. 

  1. How much I have to  pay  income tax  of my  capital  gains?.
  2. Is thee  any provision  to get  rebate?
  3. I am an IT professional,   are there any rules, I have to show  the   capital gains  in my tax  return?

 

Please advise.  Thanks in advance.

Replies (4)

Hi, Point wise answers are - 1. It can told after calculating after calculating your income from capital gains. But flat rate is 20%. 2. There are some exemptions are given under section 54 of the IT Act, 1961 if the following conditions are satisfied

Under Section 54 – Any Long Term Capital Gain, arising to an Individual or HUF, from the Sale of

a Residential Property (whether Self-Occupied or on Rent) shall be exempt to the extent such

capital gains is invested in the

1. Purchase of another Residential Property within 1 year before or 2 years after the due date of

transfer of the Property sold and/or

2. Construction of Residential house Property within a period of 3 years from the date of

transfer/sale of property

Provided that the new Residential House Property purchased or constructed is not transferred

within a period of 3 years from the date of acquisition

. 3. You need to show in your IT return.

Thanks  Hayedar  for  your quick  answer. 

1. I bought  new  apartment   and registration  was one  on  30 March 2016.    Apartment is on  tne name  of  myself and my wife. I have taken  32 Lakhs  loan from  SBI  out of  45 Lakhs.

2. I sold  my residential   plot  on  12 May  2016  which  is on the name of  myself and  my wife  for  20 Lakhs.

3. I bought the plot  for  Rs.72,000/-  on 01 Dec 2003.

4. Please let me know  the  amount of  capital gains.

5.Since  I have  bought   apartment  before  one year   from Sale of  residentail plot,  does it  qualifies  for  capital  gains  tax  exemption.

6. My wife is  IT professional.  Can I show  capital  gains in my return  or   both  have to show?

Please advise.  Thanks in advance.

 

 

 

 

 

The Capital gain arising from sale is NIL.
You are qualified to claim exemption as per section 54F of the IT Act.

Better show in your return of Income to avoid future complexities.

Thanks   a lot!!!


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