Capital Gains tax on selling of property and purchasing new property in same gated community

Hi,

Yes, sale of old plot would attract capital gain tax. However, you can claim exemption from capital gain taxes if you can construct house on the new plot (within 3 years from the date of sale) willing to buy.

Hi

Yes provision w.r.t. capital gain wil be applicable. And you also get exemption under section 54 F . Under this section construction of new property should be complete within 3 years from sale of property.

You can take benefit of section 54 EC.

Dear Sir,

Hope you are doing well !!

Yes, you'll be liable to pay capital gain taxes.

However, you can get the capital gain exemption provided you will construct house on bought plot and the construction must be completed within 3 years of transfer of old plot. 

Additionally/alternatively, you can invest the amount in 54ec bonds within 6 month of transfer of old plot.

54EC bonds are popular investment instruments as investing in 54EC bonds allows investors to claim tax deductions on long-term capital gains. 54EC bonds also offer other features.

• 
  Safe and Secure: 54EC bonds are AAA rated.
• 
  Interest: Interest on 54EC bonds is taxable. No TDS is deducted on interest from 54EC bonds and wealth tax is exempted.
• 
  Tenure: 54EC bonds come with a lock-in period of 5 years (effective from April 2018) and are non-transferable.
• 
  Investment amount: Minimum investment in 54EC bonds is 1 bond amounting to Rs. 10,000 and the maximum investment in 54EC bonds is 500 bonds amounting to Rs 50 lakhs in a financial year.
• 
  Interest Rate: 54EC bonds offer 5.75% rate of interest payable annually.

It is advisable to take a phone consultation for detailed discussion.

We may assist you in entire procedure.

Hello,

Yes, this would attract capital gain tax. 

You can claim exemption from it if you intend to invest as per SEc. 54F / 54EC.

I hope this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Yes obviously it will attract capital gain as there is no exemption from capital gain if you sell one plot and buy another.

The capital gain would depend on the duration for which you had held the asset.

The only exemption available for your would be to invest in bonds u/s 54EC.

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

Thank you.

Capital gain Tax will be applicable but you can claim exemption under Sec 54F for the amount invested in another plot. This should be purchased within 2 years from the date of sale.