Capital gain and income tax for sale of residential property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Please note i have taken propery on jan 2013 and i wish to sale the same in nov-14.
if purchase price 21 Lacs and sale price 22 Lacs. dont want to purchase new property then
on what amount capital gain will have to pay.
i have taken last year 80C deduction for Principle pay. what will be tax implication.
pls guide

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 November 2014 it is short term capital gain. Add 1 lac to your other income and pay the tax accordingly.

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Thank, means only on 1 Lac short term capital gain to be paid and what about deduction of Principle taken u/s.80C no tax.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 means on 1 lac short term capital gain will be applicable

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 November 2014 yes. Short term Capital gain is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Thanks Amol, but i dont have to pay tax on 80C deduction taken for Principle repayment of Home Loan.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 November 2014 The aggregate amount of the deductions of income so allowed in respect of the previous year or years preceding such previous year, shall be deemed to be the income of the assessee of such previous year and shall be liable to tax in the assessment year relevant to such previous year.
In short, the deduction claimed in 2013-14 shall be deemed to be the income of 2014-15 to the extent of deduction on account of principal repayment.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

07 November 2014 You need to reverse the 80c benefit claimed a you are required to hold the house for five years..and pay yax thereon.

Upgrade to CAclubindia Pro. Subscribe Now!

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 November 2014 Sorry Nikhil Kaushik, I did not get what you want to say. Do you mean to say that assessee can NOT sell the house for 5 years? I think, he can. The deduction shall be reversed. Your views please.

Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2014 Thanks amol and Nikhil

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

07 November 2014 Totally amol. Thats what I am saying. If you sell before 5 years, you reverse the deduction