21 December 2012
I am Vignesh, I have few queries regarding capital gain tax on residential property. Before asking queries let me set the context
My property details =========================
1) Bought a flat in Chennai with my mother as a co-owner for the amount 1621800 Rs 2) Entered into agreement with builder on 9/Aug/2003 3) Got the possession of flat around April 2004 4) My mother released all the rights on the flat by the way of release deed and made me sole owner on Aug 29 th 2012 5) I sold the property for 4300000 Rs on Nov 15th 2012
My wife’s property details =============================
1) My wife bought a flat in Chennai for 1460000 Rs 2) Entered into agreement with builder on 29/Sep/2004 3) Got the possession of flat around May 2005 4) She Sold the property for 4055600 on 4/Apr/2012
Jointly purchased Property (Myself and my wife) ======================================
1) We bought a flat in Chennai for 5631190 Rs 2) Entered into agreement with builder on 20/Mar/2010 3) UDS Registration - 2/Dec/2010 4) Final amount settled to the builder and on got the possession of flat on 3/Dec/2011
My queries ============
I have read in various forums that capital gain tax exemption can be received if a house purchased within the period of one year prior to the sale of the property.
1. Given the above scenario can I and my wife get exempted from capital gains based on our Joint property purchase? (Final payment made on dec 3rd 2011 and got the possession on same day). 2. If this is not the right forum to ask this question, can anyone guide me whom should I reach out to get the clarification ?
CAclubindia
