I purchased a residential flat in November 2016 for 72 lacs from my own savings I sold my old residential flat for 1.1 cr in May 2017 This flat I had purchased in 1987 for 1.86 lacs I had spent around 4 lacs on my old flat in 2000 Can I adjust the capital gain with the purchase of new flat or not
Hi,
Yes, you can definitely claim exemption under section 54 for the amoujnt invested in new flat against the capital gain arised on your old flat.
Please feel free to call/ revert on case you need more clarity
Thanks and regards,
Abhishek Dugar
CA CS B.Com
Sir the purchase was done before the sale and also the purchase was done from my own savings
Sir also I have booked for a under construction flat in Banglore in 2013 I have not got the possession yet Having another house in my name does it affect the adjustment of the capital gains
Hello,
You can claim the purchase of the residential flat as an exemption u/s 54. If there is still any balance capital gain left then tax has to be paid on it.
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
Ni, it will not affect.
Hi,
Since you purchased the flat within 1 year prior to the sale of the old residential flat, you can claim deduction. If the value of the new property is more than the capital gains amount arising out of the old property, then you will have to pay tax on the differential amount.
You claim deduction even though you have the other house in Bangalore.
Trust this clarifies.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
