My mother purchased a residential house at Allahabad,Uttar Pradesh on 10th May 1995 for Rs. 21,276 (the amount mentioned as price in the registry docs and property was registered under her name only). My parents have expired and i am the sole heir . I sold the same for Rs. 41 Lakh (the amount mentioned as price in the sale deed) on 17th December 2020. I also purchased a new property on 14 Jan 2020 for INR 70,20,440 at Noida, Uttar pradesh via home loan. Now the queries I have are: 1) What will be the cost price of the property in Allahabad, which will be considered for LTCG calculation,considering the base slab was shifted to 2001 and CII factor? 2) Is it sufficient to use the price mentioned in point No. 1) above or is it mandatory to get the property priced assessed by a certified valuer? 3) What amount of LTCG tax I have to pay and when? (or latest by which date?) 4) Which ITR form to choose to enter this item? I submit ITR1 as of now. 5) Can i use the LTCG amount to repay the loan on my new property of INR 70,20,440(Noida) , to save my LTCG tax as calculated in point (3) above?
1. You need to take th stamp duty value of 1.4.2001 or fair market value of 1.4.2001 and then index it.
2. Its not mandatory. You can take SDV of 1.4.2001.
3. Since you have invested the whole amt back in buying new property (assuming its a residential house), your capital gain is exempt and you dont need to pay any tax. Just dont forget to show these transactions in the return. (Read with answer in point 5)
4. ITR 2
5. Yes, you should do that.
If i don't want to use the LTCG amount ,obtained by selling old property on 17 December 2020 in repayment of home loan on new property purchased on 14th Jan 2020, will tax exemption still be applicable for me? If not , what will be the tax payable?
1. In case property is acquired before 01.04.2001 then cost or fair market value whichever is higher is considered at the option of seller.
2. In your case it is not required as the cost of new property is more than capital gain.
3. No need to pay tax as the cost of new property is more than capital gain.
4.ITR-2
5. Yes as there is no nexus between capital gain and its use. The only condition is that you should have purchased new property within time limits and it should be in your name.
6. Yes it still available.
For detailed discussion, feel free to contact.
Yes, exemption would be available.
Dear Sir,
Hope you are doing well !!
1.In respect of capital asset acquired before 1st April, 2001, the cost of acquisition will be higher of the actual cost of acquisition of the asset or fair market value of the asset as on 1st April, 2001.
2. It is not mandatory.
3.There is no tax liability because cost of new property is more than capital gain amount.
4.ITR 2
5.Yes, you can do that. Exemption would be available.
We may assist you in ITR filing.
Hi
1. The cost of acquisition of an asset acquired before 1 April 2001 shall be allowed to be taken as FMV as on 1st April, 2001 or the actual cost as chosen by the taxpayer. The cost of improvement shall include only those capital expenses which are incurred after 1 April 2001.
2. No
3. In your case as cost of new property is more than amount of capital gain you need to pay capital gain tax.
4. ITR 2
5. Yes you can do so.
1. You need to get its value as on 01.04.2001 from a government approved valuer.
2. It is a good practice to get it valued and it will save some capital gain tax.
3. Have you purchased the new apartment in Jan 2020 in your name or in your mother's name?
4. You should pay it in this quarter to save interest on advance tax.
5. No that won't help if new property is in your name.
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