Capital gains on sale of property

This query is : Resolved

Gaurav Nagpal (Querist)
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20 March 2016 Hi,
I am having a Query on Capital Gains.
My collegue have sold 1 Residential Property for Rs 28 Lacs - Registry Cost, Its Registry cost was Rs 20 Lacs in 2012. Property is sold after 3 Years, i.e. LTCG. Now, they are purchasing A Res Plot and its Registry cost is Rs 12 Lacs only.
Overall, Out of Total money of Ra 28 Lacs - Sale Price, Rs 12 Lacs is further Invested in Res Plot. Now, what will be Tax implications.And How can we save it further- If possible?
Further, More Information- Property is in the name of Lady, and she has never filed ITR, as its Taxable Income was not taxable. She is already having a owned Resi House in her Name.

Soumitra Basu

Soumitra Basu (Expert)
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24 March 2016 It is presumed that deed value and registry value is same and therefore neither section 50C nor section 56 shall have any application.
The property was purchased for Rs. 20.00 Lacs and sold Rs. 28 Lacs. Therefore, Capital Gain is Rs. 8.00 Lacs.(Indexation benefit is available). Property purchased is for 12.00 Lacs. There will be no capital gain chargeable to tax. She was having not more than 2 house on the date of transfer.