Dear expert,
If a residential house property purchased in October'2018, will it be treated a long term capital asset? If assessee sell this property in 2021-2022, can he apply CII? What is CII for FY 2021-2022?
9 Replies
prasad Nilugal
(3914 Points)
Replied 08 April 2021
Cost of Inflation Index you will get at Income Tax web site . www.income tax .gov .in .
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 08 April 2021
If the asset is sold on October 2022, then it will be treated as LTCG. CII FOR 2021-22 is still yet to be notified
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 08 April 2021
From AY18-19, the period of holding for residential house property is reduced to 24 months (instead of 36 months). So in this case, the house will quality as a long term capital asset and any sale after October 2020 will be subject long term capital gain/loss, as applicable. Indexation benefit will also be available.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 08 April 2021
Yes if property is sold on October, 2021 LTCG will arise
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 09 April 2021
24 months will be over by October 2020 (not 2021)
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 09 April 2021
Please share the notification regarding the reduction in time from 36 months to 24 months
prasad Nilugal
(3914 Points)
Replied 09 April 2021
Amended as per Finance Act 2017 from 36 month to 24 month , please refer section 2(42A) of the Income Tax act 1961 .
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 11 April 2021
Ok I have received the notification
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