Long term capital gain

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Rakesh (Querist)
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30 October 2012 i have purchaseed residetial house in 2007 in 8lacs, same is sold @ 55lacs in june 2012,
agaist this gain i have purchased residetial flat worth 12lacs and commercial premises worth 42lacs before transfer of above property,

kindly advise me that, should i fall in long term gain liability?

Anand Modi

Anand Modi (Expert)
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31 October 2012 firstly find out the Long term Capital gain after indexation.

Then from the long term capital gain you would be allowed a deduction of Rs. 12 lakh of residential property plus the registration charges you paid for e.g. stamp duty, lawyers fees, registration fee. etc are also allowable.

The cost of commercial property purchased is not allowable.