R/sir, can i avoid stcg by reinvesting

Hi,

You cannot avoid STCG unless you have carried forward any Loss under the head Capital Gains in previous years.

You have to pay tax at Normal slab rates on the Capital Gain of Rs. 12,21,000 after adding Income from all Sources and claiming all Exemptions/Deductions allowable.

Sorry sir

I don't see any possibility to save STCG here. You have to pay capital gain tax.

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

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Hi,

Any expenses incurred to improve the asset or paid towards the asset can be deducted before calculating the short term capital gain and its tax.

You can claim deductions/exemptions on short term capital gains can do so under Sections 80C to 80U of the Income Tax, provided short term capital gains do not fall under section 111A. Your case do not fall under section 111A. So you can claim deduction upto Rs 200000/- under 80 C

your short term capital gain tax is -Rs 183150, tax rate of short term capital gain is 15%

So if you havent utilized the benefit of deduction under 80C to 80U, you can claim that

Dear Sir,

In order to avoid tax on short term capital gain you can invest in any of the following :

- NHAI / REC Bond

- Capital Gain Scheme for future investing in House Property / NHAI - REC Bonds

- House Property

Sir exemption by investing in another residential property is available only in case of Long Term Capital gains i.e. if you hold property from more than 3 years and then sell.

In case of Short Term Capital Gains no such provision is available and the profit is totally taxable.

Hello Sir,

You cannot save STCG by making any investments. The maximum amount you can claim is if you would have made any expenses on the flat for repairs or refurbishment.

And I did not understand the last line about the loss - all I can see is you are making a profit in the transaction.

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