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.
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 ?
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.
Thanks for response. Even if I invest in another property , still capital gain taxes to be paid ? And sale of property will be this month and purchased property recently .
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
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.
Sure. the Sale is yet to happen . Will post details again when done. BTW , one more question , Being a simple buyer ( no business ) of property , Do I require to have GST number to claim ITC benefit from builder incase of GST tax payment ? Can an individual also get registered for GST number ?
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
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
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..
Hi, followup questions 1. The flat is on my wife's name . She is housewife . And never filed tax returns sofar . Flat is now sold and registration happend on 6 April . Should she file tax returns . And if yes, this year or next year ? 2. Buyer gave Rs 2 Lakhs in cash . Is this okay to accept ? We are opening capital gains account in SBI. should this be deposited into this account ? 3. We bought new flat sep 2017 on loan . Can we invest the above sale proceeds to this new flat ? Please clarify . Thanks
1. How the flat got registered in wifes name of we don't have any income? Who funded the property
2. Accepting cash more than 1 lacs in real estate transition is not allowed.
3. Yes
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
I had took the loan but registered on my wife's name . And got chance to read section 269 ST which talks about 2lakhs limit. But didnt get clarity