Capital gain on residential house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2013 Dear Sir ,

Pl z suggest capital gain computation on the following;

A Individual Purchase the Residential house property On July, 2006 amounting to Rs.40 Lakhs and same property sells by him on may, 12 amounting to Rs. 1.25 Cr. AND on Sep.12 he purchased another house property by Rs. 63 lakhs and same property sold in October , 12 by amounting to Rs. 75 Lakhs and again he purchased another House property on April-13 amounting to Rs. 1 Cr.
PLz suggest abt capital gain calculation.

Thanx

CA Mahavir Shah

CA Mahavir Shah (Expert)
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26 February 2013 You can consider Property purchased in Sep-12 & Sold in Oct-12 as Short Term Capital Gain.
And Consider Original Property Sold in May-12 as long term capital gain and claim Property purchased in Nov-12 for claiming exemption.

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2013 Sir ,

Rs. 75 lakhs - 63 lakhs = 12 LAKHS WILL will be STCG or Full Sale consideration Rs. 75 lakhs will be STCG.

and as i read in Section 54 LTCG If Used to buy a new res. HP but same property can not be sell within 3 yrs otherwise exemption will not be allowed.

and property purchased in NOV. 12 can be claimed against LTCG.

Thanx

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Gayathri Devi

Gayathri Devi (Expert)
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26 February 2013 Dear Sir

Good Afternoon.

We can consider this in two way :
First Way :
1. If you consider the investemnt of 1 cr in the sale of 1.25 cr property the there is no LTCG.
As well as the 12 lakhs is taxable as STCG(75-63)

Second Way
AY : 2013 -14
sales 12,500,000.00
Less COA 6,566,473.99
5,933,526.01 taxable
Lessinvest 6,300,000.00
(366,473.99)

now Sales 7,500,000.00
Purchase 6,300,000.00
STCG 1,200,000.00 taxable
If you consider that then both profit from LTCG & STCG is taxable.