Capital gains - Reas Estate

I booked an under construction house in 2010 and took the possession of the same in 2012. Also I moved overseas in 2012 and since then my status changed to non-resident –NRI. I purchased the above mentioned house for INR 12Lacs and planning to sell the same now ( June 2016) for INR 25 Lacs. Please advise me on the capital gains tax and how to save/avoid the same using legitimate means. I also own 3 other properties as listed below –
1.	2BHK purchased in 2012 for INR 28 Lacs and present value is INR 40Lacs. There is a Loan of INR17Lacs on this and is jointly owned with another family member.
2.	2BHK bought in 2013 for INR 20 Lacs and present Value is INR 30 Lacs. There is a loan of INR 10 Lacs on this.
3.	2BHK bought in August 2015 for INR 49Lacs and there is a loan of INR 38Lacs in this. 
Would transferring the capital gains amount of INR 13Lacs in the third housing loan ( INR 38Lacs) help me save capital gains tax since it was purchased less than a year ago?
Asked 7 months ago in Capital Gains Tax from Navi Mumbai, Maharashtra
Dear Sir,

I will directly jump up to your question 3, you can very well save up on taxes if you sell the property before July 2016. As per the Income Tax provisions you can either buy a property 2 years after the date of Sale or 1 year before the date of Sale. In your case to utilize that section you have to sell your property before July 2016.

There is no compulsion to repay your Housing Loan, it is up to you to either repay the loan or use it for any other purpose of your choice.

Trust this clarifies your query. 

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

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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Dear Sir,

Your capital gain tax will depend upon the cost inflation index of FY 2016-17 which has not been notified so far. Further, with respect to your question number 3, yes you can transfer the capital gain amount and avail the exemption.

Please feel free to revert in case of any queries.

Thanks and Regards,
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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As per our view In the present case you will not get exemption for investment in any residential property as on the date of sale you already own more than one property. Thus the exemption for investment is not allowed.
Shyam Sunder Modani
CA, Hyderabad
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Sorry in your present case the amount you have invested in purchase of property in August 2015 can be claimed as exemption. This comes under Section 54 wherein you have sold residential property and purchased a residential property. 

Sec. 54. - Sale of property other than residential property and purchase of residential property.
One of the larger benefit of Section 54 is that one can hold n number of properties  as on the date of transfer and still claim exemption on the gains.

Sec 54F
One of the primary conditions which differentiate this section from Sec 54 is that the assesse can hold only one property other than the new residential property on the date of transfer. 

Shyam Sunder Modani
CA, Hyderabad
953 Answers
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Dear Sir,

You can claim the exemption under section 54. There is no bar in availing exemption even if you own more than one house. 

The condition of more than 1 house is relevant for claiming exemption under section 54EC which is not the your case.

Please feel free to revert in case of any queries.

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

There is no restriction in claiming the Capital Gain Exemption in your case.

The rule is applicable to people who have sold any property other than House Property and Investing the funds in buying a new House Property.

Yours is a case of pure House Property against House Property and hence you can very well claim the exemption.

Trust this clarifies your query. 

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

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
706 Answers
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