05 December 2012
if someone have purchase one house and after one year he want to buy other resident house by selling previous one and he is having only one house did he taxable if he used entire sale price to purchase new one? pls guide me on this by appropriate section and show how to minimise tax liabilty?
05 December 2012
As the old house is held for only one year, hence on its transfer , short term capital gain shall arise which shall be taxable under normal slab rate.
You can claim deduction under section 80C upto a limit of Rs 1 lakh in regards of payment made for purchase of new house property. And while calculating the capital gain, claim all the expenses of transfer like stamp charges, brokrage paid etc. Also claim the cost of improvement to house property, if any, carried on by you.
CAclubindia
