Can gains be counted as capital gains

Hi

Yes, it would be a long term capital gain.

You may claim capital gain exemption by investing the capital gains amount into a new residential house property or section 54 EC eligible bonds.

Hi,

It would be treated as Long term capital gain.

You can save capital gain tax by investing the money in any of the following:

1. REC/NHAI bonds within 6 months from the date of sale of house (max. 50 lacs). Such bonds shall be redeemable after 5 years.

1. Investing in another house property in India within 2/3 years.

We may assist you in tax calculation.

Hello,

Yes, LTCG Long Term Capital Gain would be applicable to sale of such house property.

The exemption can be claimed either u/s. 54/54F for investment in another residential property or u/s. 54EC for investment in specified NHAI/REC Bonds within the specified time period.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi

As per Income Tax for the purpose of capital gain, Purchase of land & construction of Building will be treated as separate assets.

For calculation of capital gain, We see period of 36 months, Since U purchased plot of land in  2015, so period of holding is more then 36 month, so the gain from the same is treated as LTCG

On the same line since you have completed the construction now, so gain from the same will treated as STCG,

So it would be advisable for u to structure the transaction of sale in a manner whereby separate consideration for land and building is clearly identified. 

Plus You can save the LTCG through investing the same in bonds Specified in Section 54EC of IT act 1961

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Thanks & Regards

CA Poorvi Jain

Technically for house holding period starts from the day construction is completed and in your case its 2019 which means its a short term asset and gain on same is short term capital gain and your land is long term as you have hold it for more than 24 months.

There is no exemption from short term capital gain whereas you can save long term capital gain by investing in new house or bonds u/s 54EC.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

You will have to bifurcate the total amount received from the sale into two parts for land and house separately. This way you would be able to claim the exemption for the investment of the sale proceeds of the land.

Dear sir

please refer my answer I have suggested u that sale of plot will be treated as LTCG and sale of building as STCG

There is also a case law on it u can refer it 

CIT V/s citibank itr290 570

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Hi,

Since you have bought the land in 2015, it will be considered as date of acquisition. Construction cost can be taken as cost of improvement and indexed accordingly.

Hii

in above situation as per my view this is long term capital gain 

for calculation 

2015 is based year with plot value 

2018 is cost of construction 

and after indexation you got your cost of house 

It would be considered as LTCG.

Date of acquisition would be 2015.