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Tax implications under long term capital gain

Tax planning 298 views 1 replies

Raja

Student CA Final

38 Points Joined December 2014

Dear Professional Colleagues,

One of our client had purchased one residential property on 26-11-2012 for Rs.34 Lakhs and the market value of the property on 31-05-2015 is Rs.96 Lakhs and the Government valuation of the property on 31-05-2015 was Rs. 64 Lakhs.

What are the capital gain tax implications if sold before 26-11-2015 and after 26-11-2015, and taxable capital gain and how much amount can we avail exemption under section 54,54EC and 54F ?

Replies (1)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

If sold before 3 yrs, STCG is taxable at normal rate considering different slabs.
If sold after 3 yrs, LTCG is taxable at 20%
If sold before 5 yrs, any deduction claimed u/s 80C for principal repayment has to be reversed.
Suppose, any CG exemption was claimed earlier (u/s 54, 54F) such exemption will also be revoked if property is sold before 3 yrs
If there is STCG (i.e. sold before 3 yrs), no exemption possible u/s 54, 54EC & 54F