Option available to save Capital Gain tax in my case

Please see the reply point wise below -

1. As per exemption Section 54 (amended) of Income Tax Act. capital gain exemption is possible in your case because as per the provisions of the act the new house must be purchased 1 year before the date of sale and 2 years after date of sale. which is fulfilling in your case.

2. As first option is feasible no need of 2nd option but you can however do that ... construction is permitted 3 years within sale of house.

3. Maximum tax exemption is limited to the 100% of capital gain on both of your houses sold less new house purchased and balance will be taxable.

4. So if you proceed to sale both of the new houses your expected approximate capital gain would be Net 41.25 Lakhs (Gain in 2003 house Sale of 42.85 lakhs & loss in 2009 house sale 1.6 lakhs) considering Indexation cost of acquisition and excluding improved cost of indexation.

So, as your new house purchase would be more than total net capital gain tax this option is the best and at last you will not incur any capital gain taxes.

Hello,

1. Yes, the exemption is available u/s. 54. As per Sec. 54, the exemption is available, if the new house property is purchased either within 1 year before or 2 years after the date of sale of the old property. Since you have bought the new house in Siliguri within 1 year before the date of sale of the Mumbai house, the exemption is available.

2. The exemption is available under Option 1.

3 & 4. If you sale both the houses, the capital gain exemption for investment in the new house in Siliguri would be only up to Rs. 43 Lakhs. For capital gain calculation, you need to provide us the exact date of purchase and sale, you have only mentioned calendar year of purchase and sale.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi

Yes, exemption can be claimed for investment made in July 19.

You can sell the second house and claim exemption for the investment made in July 19.

Capital gains of two house properties can be invested in one house property and exemption can be claimed.

However, your capital gains from both the properties shall be more than 43 lacs i.e. investment made. Proportionate capital gains shall be taxable. 

Other option is to either invest in section 54 EC eligible bonds or new house property (ready to move in or under construction) or buy a lan and construct a house on it. (With CGDS account deposit condition )

We may discuss the issues further.

No. There would be no other taxes except tax on interest earned. 

The buyer would deduct 1% TDS under section 194IA when the sales consideration of a property sale exceeds 50 lacs. You may claim refund of this TDS while filing ITR.

You would have a capital gain of around 43.8 lakh and tax on same would be around 8.8 lakh but since you had purchased a flat 1 year before you can claim such as exemption u/s 54 of the act.

There might be a capital gain of roughly arounda 80k even if you have purchased a new flat of 43 lakh.

Yes you can deposit the amount and use it to construct a new house within 3 years or for just 80k you can invest the same in bonds u/s 54EC.

Yes you can or can invest the amount in bonds under 54EC it's your choice against which you wish to claim such exemption.

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

Thank you

No there won't be any tax leviable on such sale proceeds other than TDS which the buyer of your property would deduct.

Dear Sir,

Hope you are doing well !!

1. Yes, exemption will be available .

2.Yes, you can invest the amount in 54EC bonds to get capital gain exemption.

3.Yes,  Exemption can be claimed.

4.To get full capital gin exemption, you need to reinvest the unutilised money in 54EC bonds.

No, there won't be any tax deduction other than TDS on interest.

No tax deduction would be made on the sale proceeds.