Long term capital gain tax

I sold my flat (316 sq ft) at chembur for Rs. 42L  on 07/11/2015 (Registration date) which i purchased for 30L on 30/11/2012 (Registration date). Im planning to buy a resale property for which registration date exceeds 6 months period ( from old property sell date). To get exemption from LTCG tax, can i give new seller the gain amount by cheque before 6 months as a installment for new flat? will it be considered as investment in new property against old property for LTCG tax exemption? What is my capital gain if flat valuation for stamp duty comes to 52.43L against my selling price of 42L?
Asked 8 months ago in Capital Gains Tax from Navi Mumbai, Maharashtra
Dear Sir, 

As per the data, the Residential property was held for Less than 36 months.
Hence it attracts STCG and not LTCG.

For any other Query/Clarification, feel free to contact
ca.skagarwal@gmail.com
Shiv Kumar Agarwal
CA, Delhi
195 Answers
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Dear Sir,

Firstly it doesnt look like a Long Term Capital Gain as you have not completed 3 years from the Date of Purchase. To be qualified as a Long Term Capital Gain your property should have been sold on 29th November 2015 which will be taxed as per your Slab Rate. 

Secondly, if you are selling your property at a rate less than the Stamp Duty Valuation then the shortfall between the Stamp Duty Valuation and your Sale Value will be considered as Other Sources Income in your hand. 

Trust this clarifies your query. 

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

Thanking You. 

Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
719 Answers
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Your sale proceeds will be taken as 52.43 lakhs and capital gains will calculated accordingly.

The gains can be reinvested in purchase of another residential property for claiming exemption. You can pay gains as advance for purchase of the property. There is no problem.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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if your old property purchase date is 30.3.2012 then your gain will be long term and you will be eligible for exemptioj under section 54.


you can buy a new flat 1 year before the date of sale of your old residential property or 2 year after the date of sale of old property. you can also construct house within 3 years from the date of sale.


if your stamp duty value is higher than yoyr sale amount then stamp duty value will be taken for the computation of capital gain I.e. 52.43 lacs.

please let us know if your require anything else.

Thanks and Regards
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
766 Answers
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Dear Sir,

Assuming the Date of Purchase of property is now correct, then the gain will be considered as Long Term Capital Gain. 

The Sale proceeds would be considered as Rs.52.43 Lacs even though your sale deed mentions a lower amount.

In order to save up on taxes you can invest the entire Capital Gain for the purchase of another residential property within a span of 2 years from the Date of Sale or 3 years from the date of sale if the property is being constructed.

Trust this clarifies your query. 

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

Thanking You. 

Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
719 Answers
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Sale Value would be Rs 52.43 L
LTCG would arise.

You can Purchase another Property one year before or 2 year after the due date of property sold.
Shiv Kumar Agarwal
CA, Delhi
195 Answers
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  Talk to Shiv Kumar Agarwal
YES
Vishrut Rajesh Shah
CA, Ahmedabad
239 Answers
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