29 July 2012
I had purchased a builder floor (first residential property) in Delhi in November 2009, as per the details below: A. Consideration amount: Rs. 04,10,000/- B. Registry charges: Rs. 16,400/- C. Brokerage: 13100
I sold the same property in March 2012, details are as under: A. House Tax paid for two years: Rs. 1,000/- B. Consideration amount: Rs. 06,40,000/- C. Brokerage: Rs. 19,300/-
In March 2012 (same month), I purchased a builder floor (residential property) in Delhi, as per the details below: A. Consideration amount: Rs. 08,85,000/- B. Registry charges: Rs. 35,400/- Brokerage: 47200
Please tell me: 1. What and what type of gain on the above transaction? 1. If the gain is taxable or what? 2. I am a salaried female, Indian. How I file income tax return for AY 2012-13 in respect of the above gain? 3. If possible, please send me exact entries column-wise to be entered in ITR form, as per the figures mentioned above on my e-mail address kerrycherry@rediffmail.com
29 July 2012
You have short term capital gain tax as follows.
a) Sale consideration 640000 Less: Brokerage Paid 19300 ______ Net Sale Consideration 620700 b) Cost of acqasiation 410000 ______ 210700 Less: Reg charges 16400 ______ 194300 Less: Brokerage Paid 13100 ______ Short term Capital gain 181200 ______
On the above short term capital gain you have to pay short term capital gain tax @15%+2%+1% i.e. Rs.27995(including cess).
You said you sale the assest in March 2012 so assume it is after 15th March 2012 otherwise liable for payment of advance tax in case fail to pay advance tax liable for interest according to the section 234B & 234C i assumed your sale is after 15th March thus i didn't consider interest factor for tax computation.
Note: To avail short term capital gain tax exemption asset should be transfer and invest according to the section 54B,54D,54G & 54GA and the terms and conditions of such sections has to be satisfy.
Your transfer doesn't satisfy any terms and conditions of any of the above sections and doesn't transferred and invested according to such sections so you didn't avail the exemption of capital gain tax.
So you should be pay short term capital gain tax as said above amount.
However for filling of return of details is as follows 1) ITR-2 is sufficient 2) At the schedule CG in the PART-A option-2 has to be fill as follows. a) 640000 b)i) 410000+16400+13100=439500 b)ii) 0(assume no additions made to the sold property by you) b)iii)19300 b)iv) 458800 c) 181200 d) 0 e) 0 f) 181200 3) 0 4) 181200 5) 0 6) 181200 and at part-C option iv) under STCG OTH fill Rs.181200(assumed gain arises after 15th March).
30 July 2012
But I have learnt through this artilcle - http://www.ninemilliondollars.com/2012/04/long-term-capital-gains-tax-ltcg-on-property-sale/
that, "When a property is sold within one year it is subject to Short Term Capital Gain (STCG) and when sold after one year, it is chargeable under Long Term Capital Gains Tax in India (LTCG)"
Now I have to mentioned again that, I had purchased property in year 2009 and sold the same in 2012, as per the above artilcle, it already passes more than year. So, it is not under STCG, it would be under LTCG. Please clarify as early as possible.
31 July 2012
For the following cases only consider the period of holding is one year for the short term capital gain purpose: case 1: Equity or preference shares in company case 2: Securities(like debentures,Government securities) case 3: Units of UTI case 4: Units of a mutual fund specified under section 10(23D) case 5: Zero coupon bonds
For the above cases the period of holding is more the 12 months consider long-term capital gain/loss. For all other cases the minimum period of holding is 36 months to long-term capital gain/loss.
In your case your asset transferred is residential house and doesn't cover in any of the above cases. Thus your gain is short term gain because your holding period is less than 36 months.
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