Capital gain

This query is : Resolved

jitendra (Querist)
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28 May 2013 i wish to purchase a residential flat in name of myself & wife , the purchase value will be
60 lacs.

secondly we wish to sell :---
(1) a residential plot ( in name of myself & wife )for 18 lacs, jointly purchased in june 2008 for 7.5 lacs.

2)a residential plot for 20 lacs,purchased in April 2011 for 11.5 lacs ( in name of my wife only).
pl suggest what will be the capital gain tax on each of us seperately & advice whether we can sell the above two properties after registration of new flat
but within one year .

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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30 May 2013 when Sale of Assets

1. In the first plot

Sale Consideration = Rs.18 Lacs
Less Cost (indexed)= Rs.10.98 Lacs (value for FY 2012-13)

LONG TERM CAPITAL GAIN= Rs.7.02Lacs

Your share wife Share
LTCG 3.51 Lacs 3.51 Lacs

but you can claim exemption of the purchase you are planning of Rs.60 Lacs U/s.54F

2. for 2nd Residential plot it is short term capital gains taxable under normal rates in the hands of your wife

Sale = Rs.20 Lacs
Cost = Rs.11.5 Lacs

SHORT TERM CAPITAL GAIN = Rs. 8.5 Lacs

since you have not provided with the share s of you and your wife in the plots

i have considered as 50:50

yes you can sell the house after registration

but for the 2nd plot (in wife's name) you should sell it after 3 years from purchase so as to take exemption & save tax

as exemption is not available for short term capital gains

jitendra

jitendra (Querist)
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30 May 2013 dear sir

thank you very much for your quick reply, pl clarify :

whether we can avail exemption if we sell both the plots after our sale -registration
of NEW FLAT .( till completion of three year for plot - 2nd as advice by you ).

PL note that we had a residential house in which we lives / self occupied.Will this house effect any way to avail exemption for our further planning. pl advice

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CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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31 May 2013 yes you can avail exemption

but you should see that the both date does not have a gap of more than 1 Year

i.e Purchase Date of New Flat & Sale of old plot (in wife name)

Suppose Purchase Date is today 31/05/2013

then the Sale Date should be on or before 31/05/2013

& the fact that you already owe a self occupied house will not affect

but you should not owe more than 1

jitendra

jitendra (Querist)
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01 June 2013 thanks dear

As from your reply pl check the sale date
mentioned by you ( should be 31/05/2014).

secondly i also had a small residential flat ( registered in my name in year 2002) also which i had rented & showing rental income in returns .
A portion of our both self occupied House are also rented & my wife were showing the whole rented income received .
pl advice whether i can avail exemption on considering rented flat ( registered in my name )

jitendra

jitendra (Querist)
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03 June 2013 MR SAURABH

WAITING FOR YOUR REPLY PL.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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03 June 2013 yes date is 31/05/2014

if you have more than one house then as per the provision you cannot claim exemption in that case

jitendra

jitendra (Querist)
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03 June 2013 thnks sir

But my wife can claim the exemption as she has only one residential house jointly registered in name of both of us. If she can, than how much will be the amount exempted .

secondly how much i had to pay tax as capital gain , pl reply.

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jitendra

jitendra (Querist)
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04 June 2013 MR. SOURABH

WAITING FOR YOUR REPLY.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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04 June 2013 Yes she can claim the exemption

exemption amount is =

Amount Invested in new house X capital gain/Sale Consideration

Long term CG taxable @ 20 % after Indexation