Capital gains

This query is : Resolved

K A Narayanan (Querist)
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06 June 2019 My late father had purchased 6000Sq.ft land in the year 1940 at Rs. 2,000/- and a built a house for which he spent around Rs. 10,000/-. After he passed away I became entitled to 1/4 share. The property was handed over to a developer and he has built 6 flats. He has retained 2 flats and out of the remaining 4 flats, I get one flat. The remaining 3 flats are for my sister and brother. The developer has sold one of the two flats for a sum of Rs. 2.5 crores. If I sell my flat immediately at the same price, what will be the short term capital gains tax I will have to pay? If I sell it after 2 years, what will be the long term capital gains tax I will have to pay? I shall occupy the flat for 2 years or rent it out if I sell it after 2 years. I do not have any other flat or house at present.
K.A.N. Iyer

Amol S Joglekar

Amol S Joglekar (Expert)
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06 June 2019 The entire consideration for the sale of flat shall be short term capital gain.
You can sell it after 2 years and opt for long term capital gain