Tax liability on sale of house property
This query is : Resolved
18 December 2012
Dear Sir,
I sold my flat in Dec.2010 for Rs.2500000/- and the long term capital gain was Rs.1310783/-.Then i purchased a plot of 300 yards and started construction.I spent Rs.1365463/- on construction before 31/07/2011 and showed it in my Income Tax return filed in July 2011.YES I HAVE CLAIMED EXEMPTION U/S 54 IN MY INCOME TAX RETURN. After that till date i had spent a total amt.of Rs.3694000/- including capital gain amount of Rs.1365463/- on the construction after taking a loan of Rs.1200000/-from the bank.But the construction is still incomplete requiring atleast another big amount of Rs.700000/-.
Now i am out of funds having no other source to raise money.Also i had to make arrangements for the marriage of my daughter in the next 7-8 months. So now i want to sell this UNFURNISHD HOUSE.
What are my TAX LIABILITIES in this case.
Please guide me accordingly as i am under great tension.PLEASE ELABORATE THE REPLY BY MAKING A CALCULATION.
Tanking you.
ARUN SHARMA
I sold my flat in Dec.2010 for Rs.2500000/- and the long term capital gain was Rs.1310783/-.Then i purchased a plot of 300 yards and started construction.I spent Rs.1365463/- on construction before 31/07/2011 and showed it in my Income Tax return filed in July 2011.YES I HAVE CLAIMED EXEMPTION U/S 54 IN MY INCOME TAX RETURN. After that till date i had spent a total amt.of Rs.3694000/- including capital gain amount of Rs.1365463/- on the construction after taking a loan of Rs.1200000/-from the bank.But the construction is still incomplete requiring atleast another big amount of Rs.700000/-.
Now i am out of funds having no other source to raise money.Also i had to make arrangements for the marriage of my daughter in the next 7-8 months. So now i want to sell this UNFURNISHD HOUSE.
What are my TAX LIABILITIES in this case.
Please guide me accordingly as i am under great tension.PLEASE ELABORATE THE REPLY BY MAKING A CALCULATION.
Tanking you.
ARUN SHARMA
18 December 2012
Have you claimed exemption u/s 54 in the year of transfer??
18 December 2012
If you have claimed the exemption earlier then Capital gain shall be as follows-
Sale price of new asset
less:amount spent on construction
Add: Capital gain at the time of transfer of original asset.
Sale price of new asset
less:amount spent on construction
Add: Capital gain at the time of transfer of original asset.
20 December 2012
YES I HAVE CLAIMED EXEMPTION U/S 54.PLEASE ELABORATE THE REPLY SHOWING A CALCULATION.
20 December 2012
Sale price of new property= XXX
Less: Cost of the constructed propert= Rs. 1310783(Rs. 3694000-Rs. 1310783)
Short term capital gain= Rs. XXXX
Less: Cost of the constructed propert= Rs. 1310783(Rs. 3694000-Rs. 1310783)
Short term capital gain= Rs. XXXX
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