Sale of old flat and purchase of new one - taxation
This query is : Resolved
16 January 2018
I sold the old Flat in which I was living for Rs 22 Lakhs this financial year. The Capital Gain will not exceed Rs 7 Lakhs in any case.
My question is that if I buy a new residential Flat for exactly Rs 8 Lakhs in the same financial year, will I have to pay any tax at all on the sale of my flat ?
I am referring to Section 54 tax exemption. Assume that the Capital Gain calculation is correct. Also I will not have more than one house at any time.
I ask this question because someone confused me with the term ‘sales proceeds’.
My question is that if I buy a new residential Flat for exactly Rs 8 Lakhs in the same financial year, will I have to pay any tax at all on the sale of my flat ?
I am referring to Section 54 tax exemption. Assume that the Capital Gain calculation is correct. Also I will not have more than one house at any time.
I ask this question because someone confused me with the term ‘sales proceeds’.
17 January 2018
You need not pay any tax on the sale of flat as you have invested the entire capital gains in buying a house.
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