LTCG ON HOUSE PROPERTY

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sameer joshi (Querist)
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22 October 2019 We have purchased a plot worth Rs 800,000 on 25-08-2017, and constructed house on it. Cost of construction of house was 35,00,000 and now i want to sell it 50,00,000. Query (1) whether income will be considered as LTCG or STCG. (2) If we purchase new house property can we claim deduction u/s 54. Thanks in advance.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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23 October 2019 Land - Long term capital gain since the holding period more than 2 years
Building / structure - Short term term as holding period less than 2 years.

Sale consideration you have to bifurcate based on the valuer accordingly calculate the capital gain. For land you can apply indexation.

54 may not available as you are selling land, check 54F