Dear Sandeep,
Please repost your query as the dates of agreements & dates of disbursements are got deleted.
Need assessment of liability on Capital Gains and advice on the same for lowering it
Hi, below are details of three flats that I had in this financial year beginning. While FLAT#2 is still running on loan, I have sold flat#1 and have capital gains on the same. I need help on assessing Capital Gain tax liability and steps to mitigate the same. FLAT #1 buying details: Date of Agreement: [deleted] Agreement value: Rs 17.10 lakhs Loan Amount and disbursal date by bank to builder: 15 lakhs(Disbursed 11 lakhs on [deleted], 4 lakhs on [deleted]) FLAT#1 selling details: Date of sale: Sep 2019 Total Value: Rs 63 lakhs Margin money amount and received date: 13.37 lakhs(July 2019 after deducting 63k as tds) Balance money through HDFC Bank: Rs 49 lakhs (Sep 2019) Flat # 3 details: Date of Agreement: [deleted] Agreement value: Rs 91.72 lakhs Loan Amount and disbursal date: 66.25 lakhs(Disbursed on [deleted]) Personal Loan taken from relatives for paying margin money of FLAT#3: 16 lakhs(in Dec 2018) For foreclosing Flat#1 loan: 9.45 lakhs(Jul 2019) Regards, Sandeep.
Asked 5 years ago in Capital Gains Tax
Hi, Looks like it has been misunderstood as a contact number and hence deleted by system. Below are the details: FLAT #1 , Date of agreement: August 2005 Loan Amount and disbursal date by bank to builder: 15 lakhs(Disbursed 11 lakhs on SEP2005, 4 lakhs on OCT2006) FLAT #3 Date of Sale: Sep 2019 Loan Amount and disbursal date: 66.25 lakhs(Disbursed on DEC2018)
Asked 5 years ago
Hello,
Capital Gain on sale of Flat #1 is approx. Rs. 20.75 Lakhs ( Sale Consideration Rs. 63 Lakhs F.Y. 2019-20, Cost of Acquisition Rs. 17.10 Lakhs F.Y. 2005-06)
You can claim exemption from above capital gain u/s. 54 for investment in Flat#3 in one year before the date of sale of Flat#1.
I hope that this answer satisfies your requirements. For further understanding, you can contact us directly or take a phone consultation.
Regards,
CA Hunny Badlani
Hi, As you can see from details submitted, I have already invested in FLAT # 3 within one year time frame. However, I wish to know if there will be a tax liability or no. Sandeep.
Asked 5 years ago
No tax as the cost of new flat i.e. falt no.3 is more than capital gain on flat no.1
Hi Sandeep,
Yes, you will get the capital gain exemption.
No tax liability after exemption u/s. 54.
No since you have invested in Flat 3 within a year i.e. in the same month of sale and its value is more than the sale amount there wont be any capital gain.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi Sandeep
Since you have invested the capital gains amount in a new residential house property within before 1 year time frame, capital gain exemption shall be provided under section 54.
You need to report the capital gains and exemption thereof in the ITR for FY 19-20.
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