Treatment for short term capital gains on sale of resdenital

Tax planning 3803 views 7 replies

Mallikarjuna Gupta

Service

68 Points Joined October 2007

Hi All,

I have a query on treatment of short term capital gains on the sale of resdential property. For the difference of the cost price and the selling price after taking into indexation benfits there is a proift and on that as per law it has to be treated as short term captial gains.

Now the question is do i need to pay the short term capital gains if i purchase another resdenital property in the same year of sale? If not can i invest the same in some government bonds for a stipulated period and save tax on it? Advise which is the best way of going about.

Thanks in advance.

Regards

Mallikarjuna Gupta

Replies (7)

Basavaraj

B.Com FCA

193 Points Joined September 2007

There is no exemption for short term capital gains. It will be included in the total income and charged to tax as per normal slab rates.

Rahul Agrawal

Pursuing CA

52 Points Joined June 2012

no exemption for capital gain tax .

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

There is no benefit available for Short-Term Capital Gains. you would have to pay tax on the STCG without any tax benefit. Moreover, there is also no indexation benefit available for the short term capital asset.

Neha sharma

1257 Points Joined February 2012

Capital Gain is exempt on purchase of a new property only if the Capital Gain was Long Term and not Short Term

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Joined February 2011

As correctly pointed out by learned members, STCG on sale of residential property shall be taxable @ 15% (special rates), no exemption available.

yashsr

2285 Points Joined April 2011

Originally posted by : Prateek Agarwal
	As correctly pointed out by learned members, STCG on sale of residential property shall be taxable @ 15% (special rates), no exemption available.