Taxes applicable on flat sale & then invest

Hi,
   If I sell my flat  and then also invest in another property purchase , I have below doubts .
  1.  Any taxes applicable in this transaction ? 
  2.  GST registration is required for selling property ? 
  3. Can I deposit the payments cheques in to my Savings account ? 
  4. How much I will have to invest in another property ?
Asked 3 months ago in Capital Gains Tax from Hyderabad, Telangana
1. Capital gain taxes shall be applicable.

2. No GST, no GST registration.

3. Yes.

4. We need to know the date of purchase and sale of the property to answer this.
Lakshita Bhandari
CA, Mumbai
700 Answers
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Hi,

1. Yes, you will have to pay capital gain tax but it can be exempted if you invest the capital gain amount in another residential property subject to certain conditions.

2. Not required.

3. Yes, you can.

4. You will have to invest capital gain amount in new property assuming both old flat and new flats are residential flat and not merely a land.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards,
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2209 Answers
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Exemption for reinvestment is available only for Long Term Capital Gains. 

Gains become long term if property is sold after 3 years of purchase.

Short term Capital Gains are taxable.

Provide details for apt reply.
Lakshita Bhandari
CA, Mumbai
700 Answers
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Hi,

You dont need any GST number and you cant claim any refund of GST from the govt.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards,
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
2209 Answers
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Hi,

1. From Income-tax purposes, capital gain tax will be payable on the capital gains arising out of the sale of property. Registration charges and stamp duty on the transfer of the property will also be liable, but either you or the buyer or both of you can bear it. 
2. You do not need a GST registration number to sell a flat.
3. Yes, you can deposit the amount in your savings account.
4. The investment in the new property will depend upon the cost of old property and the sale value. The capital gains arising out of the sale of old property should be invested in the new property. If you invest less than the capital gains, then the differential amount will be taxable at the rate of 20%. Capital gains amount will be Sale Consideration less the indexed cost of acquisition. Indexed Cost of Acquisition will be the cost of acquisition multiplied by the cost of inflation index of the year of sale and divided by the cost of inflation index of the year of purchase. 

You can apply for a GST number only if you have a business or a profession. Further, you can claim the ITC of the GST paid to the builder, only if you are in the business of construction.

Regards,
Keerthiga Padmanabhan
M.Com, CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
688 Answers
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Hi,

You would be inviting unnecessary compliance burden if you register for GST. GST paid to builder is not refundable. So, I would not advise to register for GST and add compliance costs when you know that you can't utilize the Input or claim refund..
Pradeep Bhat
CA, Bengaluru
367 Answers
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