• About tax on sold property


I have purchased my home property in Dec2010 and sold it on Feb2014 and brought new house on jul2014. I was not aware of Capital gain tax at that time. Do I need to pay any Capital gain tax on it?
Some of my colleague was saying this. Wanted to clarify on this point?

Is there any way I can validate I am not breaching any income tax queries/norms.
Asked 2 years ago in Income Tax from Pune, Maharashtra
Following conditions should be satisfied to claim the benefit of section 54.
• The benefit of section 54 is available only to an individual or HUF.
• The asset transferred should be a long-term capital asset, being a residential house
• Within a period of one year before or two years after the date of transfer of old
house, the taxpayer should acquire another residential house or should construct a
residential house within a period of three years from the date of transfer of the old
house. In case of compulsory acquisition the period of acquisition or construction
will be determined from the date of receipt of compensation (whether original or

So need to pay any income tax provided that your capital gain amount should be greater than or equal to Amount of New Residential property purchased.
Deepak Rathore
CA, New Delhi
31 Answers
5 Consultations

4.3 on 5.0

1.Ideally you should have shown in your Income tax Return as income and then take the benefit of section 54.
2.Yeah, you can check it through your Income tax log in - By checking E- File return status
Deepak Rathore
CA, New Delhi
31 Answers
5 Consultations

4.3 on 5.0

in the present case you need to file your tax returns declaring the capital gains and claiming exemption thereon.

U file the same before 31st march 2016.
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

since your new house purchase is more than 30 lacs, information has already been sent to department. 

At the time of filing your returns, you have to show income under "Capital gain" chapter and claim a deduction for investment in new house property. please ensure the entries are made in a correct manner to ensure no problem in future. Avail services of a CA only in this regard. 
Shashank Surana
CA, Chennai
60 Answers
4 Consultations

4.3 on 5.0

Hello Sir,

You should have shown the details in your Income Tax Return for that financial year. Since you have omitted doing so, it is preferable to wait for any communication from the side of Income Tax if any, then you explain it to them that you were unaware of the law and hence missed out in declaring the details. Though you have not evaded any taxes. 

Trust this clarifies your query. 

Feel free to get back/ call back for any further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Following conditions are mandatory for availing capital gain exemption under section 54

1 There should be long term capital gain(if property hold 3 or more yr) 
2 Benefit is available to individual and HUF only
3 House is purchased one year before or two year after from the date of Transfer of property(i.e.Feb 2014)
 or constructed within 3 yr
We cannot sold house property purchased within 3 yr other whole amount of capital gain will be reduced from the cost of acquisition of new property(35 L-Cap Gain)

Net Sale Consideration                                     2800000

COA      2300000*(939/711)                                3037552

Actually there is no capital gain tax

Long Term Capital Loss    Rs. 237552

Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

Dear sir,

you have to file your tax returns declaring the capital gain tax and you can exemption under section 54.
Considering the facts, you may not need to pay taxes but you should file itr

It is advisable to file the same before 31st march 2016.
Abhishek Dugar
CA, Mumbai
2929 Answers
123 Consultations

5.0 on 5.0

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