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Capital gain

Deepak Walia (Not Applicable) (133 Points)

05 May 2017

I bought one builder floor at Rs. 20 lacs on 29th May 2015. Now I want to sell this floor at Rs. 45 lacs in June 2017 with a view to buying another ready to move property. What should I do to make my capital gain tax liability at zero! Can I do this!

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 05 May 2017

Yes, you can take advantage of section 54, because of amendment in finance act, 2017. It will be treated as long term capital gains. So no tax liability when you purchase another house property within specified period.

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Deepak Walia (Not Applicable) (133 Points)
Replied 05 May 2017

One more thing sir, the maximum period in which I can buy the another ready to move property. Also the amount of property which is required to take income tax liability at zero.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177896 Points)
Replied 05 May 2017

1. TWO years from the date of sale

2. 22 lakhs if the property to be sold is ready apartment.

Deepak Walia (Not Applicable) (133 Points)
Replied 07 May 2017

I am required to buy ready to move apartment for Rs. 22 lacs as replied above means Rs. ( 45 - 20 = 25). That means balance of Rs. 3 lacs attributes towards indextion from the date of purcahase 28th May 2015. Am I right sir!