LTCG tax exemption

Hello Sir,

-There would be capital gain of around Rs. 8 lakh on flat no 1 sales.

-There would be capital gain of around Rs. 12 lakh on flat no 2 sales.

As you have already invested 12 lakh in tax free 54EC REC bond on 07.10.2019 So you will get full capital gain exemption on flat no 1.

Now you need to pay the taxes on sales of flat no 2 only i.e. you will be required to pay the capital gain tax@ 20% (plus applicable surcharge & cess) on capital gain amount of Rs 12 lakh.

Please take a phone consultation for better understanding.

Have you made any agreement in 2006? If yes we can consider it as purchase date otherwise it would be 2009 in which case indexed cost would be 23.43 lakh and capital gain would be 14.56 lakh.

Capital gain in case of second flat would be 12.21 lakh.

You need to further invest the balance amount and you can invest it in either bonds u/s 54EC or purchase another flat of balance capital gain amount.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello,

You need to provide us the date of allotment of flats to you to calculate the exact capital gain.

Capital Gain on Flat 1 would be Rs.8.35 Lakhs (approx) (Assuming the date of acquisition to be the year of full down payment)

Capital Gain on Flat 2 would be Rs. 12.20 Lakhs (approx)

You will get full exemption of Rs12 Lakhs invested in 5EC Bonds and you can further invest the remaining capital gain in another house property u/s. 54 or more bonds u/s. 54EC.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi

Please share the dates of allotment of both the flats for capital gain calculations.

Exemption shall be claimed while filing ITR for the Financial Year 19-20.

Dear Sir,

Hope you are doing well !!

For exact capital gain calculation, we need the date of allotment of both flats.

You will get the capital gain exemption on amount invested in 54EC bonds while filing ITR for the FY 2019-20.

Dear Sir,

Here is my replies to your queries:

Flat 1- Computation of Capital Gain 

 Sale Consideration - 38,00,000

Less Cost of Acquisition- 29,64,102

(12,00,000* 289/117)

 Capital Gain - 8,35,898

Indexation Rate of FY 2019-20 is Rs. 289

Indexation Rate of FY 2005-06 is Rs. 117

Flat 2- Computation of Capital Gain 

 Sale Consideration - 49,00,000

Less Cost of Acquisition- 36,78,181

(28,00,000* 289/220)

 Capital Gain - 12,21,819

Indexation Rate of FY 2019-20 is Rs. 289

Indexation Rate of FY 2013-14 is Rs. 220

Date of payment is not mentioned in this case so date of registration is assumed to be the date of payment.

Total Capital Gain - (1& 2) - Rs. 20,57,717.

Already Invested - 12,00,000 (Exempted)

Balance - 8,57,717.

You can invest further Rs. 8,57,717 for getting the full exemption.

Thanks and Regards 

Divya Chugh 

- Flat 1 gain is Rs. 14.57 lacs

- Flat 2 gain is Rs. 12.22 lacs

- Total Gain is Rs.26.79 lacs. Either you can invest in bonds or house property. You can invest more Rs.12 lacs in bonds.