Long term capital gain tax

Dear Sir,
Details of my existing flat:-
1. 1994-95 purchased at Rs. 4,30,000/-
2.  1997-98 renovation of Rs. 65,050/-
3.  2009-10  renovation of Rs. 5,84,700/-

Yesterday (02.09.16) Sold at Rs. 48,07,000/-

Please advise me that how much will the LTCG TAX and where to invest to save TAX.

Another quarry related to this is that ....
In the year 2012-13 I have purchased another flat by BANK loan with an intention to  sell the old one and deposit all the sale AMOUNT in my new flat/bank loan.
But due to many reasons old flat was not sold.
Here also the new flat was under construction and no OC was given by the builder.

The OC was given by the builder in July 16 and the last instalment paid by the bank in July 16 and we will shift by next month.

The present outstanding in Housing loan account is 43.5 lakhs. If I pay full amount to my BANK, can I get relief from LTCG ? Because since the OC was not available, the last instalment paid by the bank in July 2016 and I sold my old flat yesterday in the same year .

Please advise,

With thanks and regards,

SURESH JAIN
Asked 3 months ago in Capital Gains Tax from MUMBAI, Maharashtra
Hi,
your capital gain is around Rs 16.7 L

you can claim exemption under section 54.
Condition of Exemption Under Section 54
    This exemption is only for the individual/HUF.
    The capital gain should be long term. This exemption is not available for short term capital gains.
    You should buy the new residential property.
    You must buy new property within 2 years of the transfer of old property. If you are constructing a new house, the exemption is relaxed for one more year i. e. 3 years.
    You can also buy a new property before one year of the transfer of old property.
    In case of compulsory acquisition, the period of acquisition or construction will be determined from the date of receipt of compensation (whether original or additional).
    The exemption is available for only one residential house property. This is a new rule and effective from the assessment year 2015-16.
    The exemption is available if a house is purchased within India.
Exemption of capital gain depends on when  ownership in property is transferred in your name.
if registration of property is done depending on above conditions then you can claim tax exemption.
occupancy certificate does not play role in capital gain exemption.


Vishakha Agarwal
CA, Bangalore
213 Answers
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You will be liable to pay LTCG tax. Further, to get the exemption from capital gain tax, you will have to construct the house within 3 years from the date of sale of old house. 

CONSTRUCTION of new house before selling old the housing is not eligible for exemption. However, PURCHASE of house before two years from the date of sale of old house is permissible.

Since, you have got the house constructed before  selling the old house, you are not eligible for exemption.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com

Abhishek Dugar
CA, Mumbai
766 Answers
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Sir can you mail the same to our personal mail ID as calculations can be forwarded to you from our mail ID only
Shyam Sunder Modani
CA, Hyderabad
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ok mail received
Shyam Sunder Modani
CA, Hyderabad
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Hello Sir,

You cannot adjust the LTCG on sale of flat against the purchase of new property, purchased in the year 2012-13. Even though the final payment was made in 16-17 that does not make your Year of Purchase as 16-17.

So in order to save taxes you can invest the Sale Proceeds in Govt Bonds like NHAI/ REC u/s 54EC, upto a maximum of Rs.50 Lacs.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

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