Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 I have a client finalisation to do. He has sold his self occupied property a flat which he sold during f.y. 12-13.
But before selling this property he had bought another property which is now self occupied by him.
I want to know how the tax will be charged. Whether on normal tax slab rate or any other percentage.

And whether there is any deduction he can get on the property sold.(capital gains)
The flat sold is purchased on 1/7/2000.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 March 2014 1. Tax rate will depend on whether the asset is a long term capital asset or a short term capital asset.

2. Further exemption u/s 54 (investment in new residential property is also available if the asset transferred is a long term capital asset).

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2014 But the reciepts of flat sold if used to buy other residential house can only be claimed as deduction?

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 March 2014 you dont have to worry. exemption under section 54 shall be available. the quantum for the same shall depend the indexed cost of acquisition, the consideration received and cost of house acquired.