Capital gains tax on JDA

Hello,

1. Capital Gain Calculation: Your capital gain is $1.5\text{ crore (your share)}-\text{Indexed Cost of Acquisition (COA)}$. The COA is indexed for inflation from the year of original purchase (2005) to the year of sale (2024).

2. Nature of Gain: This is a Long-Term Capital Gain (LTCG) as the land was held for more than 24 months.

3. Tax Exemption on Investment: You can claim tax exemption under:

   • 
     Section 54: If you reinvest the capital gains in another residential property.
   • 
     Section 54F: If you reinvest the entire sale consideration in a residential property (applicable if the sold asset is not residential).

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

For the sale of your residential triplex house, you can avail tax exemption under Section 54 by reinvesting capital gains in another residential property in India. Owning other properties, including your house in the USA, doesn't affect this. Section 54F doesn't apply here as it's for assets other than residential houses. Ensure compliance with investment timelines and holding periods. For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

As you got the property through gift, period of holding and cost of acquisition is considered as in the hands of previous owner (i.e. donor). As the property was acquired in 2005 and sold out in 2024 therefore it is a long term capital asset. Rs. 5 lacs would be considered as COA and benefit of indexation would be applicable accordingly. From A.Y. 2018-19, section 45(5A) was introduced for calculation of capital gain in case of JDA. When the completion certificate was issued? There are more questions attached to it before arriving at the precise calculation of tax liability.

For detailed discussion you may opt for phone consultation