• Tax to be paid on sale of property

I sold my house for Rs.55 lakh in year 2016-17.while i had brought the same house for Rs.20 lakh approx.in year 2003-04.
Whereas i also brought a flat of Rs. 20 lakh in year 2017-18.how much tax would i have to pay.
Asked 1 year ago in Capital Gains Tax from New Delhi, Delhi

Hi,

Whether you have taken the exemption in return of income for section 54. If yes, then no tax will be required to be paid.

Can you please let us know whether you have filed return of income for FY 2016-17 or not? It will be crucial.

Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

Capital Gain calculation is as under

Sales 55 Lakhs

Purchase cost 2000000*264/109 = 4844037

thus gain is 655963

now as you said you had invest in new flat of Rs. 20 lakhs then primarily you dont need to pay income tax on sale of flat but final conclusion depends on some more information,

i..e do you have other property (except sold house) date of purchase of new flat , your residential status

Lalit Bansal
CA, Delhi
566 Answers
37 Consultations

5.0 on 5.0

Hi

In this case, there would be no capital gain tax liability as the amount of capital gains are invested back in another house property. You can claim section 54 exemption.

File your income tax return to claim the exemption. We can help you in return filling.

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

Hello,

When exactly did you sell it in 2016-17 ??

Did you open a capital gain account and deposit the funds in the same or is it still lying with you in your savings account. If you have opened one and transferred the funds then NO Capital Gain Tax shall be payable by you but in case the funds are still lying with you then you were liable to pay capital gain taxes while filing the ITR for FY 2016-17 itself. Approx Capital Gain was Rs.850,000/-

Trust the above clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

When did you buy a new flat in the year 2017-18 ?

Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

you have to purchase new residential property on or before due date of filling of return and if you also have other residential property in your name then you have to invest whole sales consideration i.e. Rs. 55 lakhs for tax saving.

For AY 2017-18 due dates for filling ITR is 05.08.2017 for non audit case and 07.11.2017 for Audit Case

Lalit Bansal
CA, Delhi
566 Answers
37 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA