My 3 brothers and I own a ancestral property which we are planning to sell... Out of which i will receive around 30lakhs...now i have purchased a piece of land registered to my name about 20 yrs back... And recently have purchased a flat for which I have not yet completed the registration..
Q1.... Now for the 30 lakhs that I am expected to receive will i have to pay 10% LTCG or can that be adjusted if i build a house with that amount in the piece of land that I have bought... Since someone told me to claim 10% LTCG you cannot have more than one house... But it's just land and the flat is not yet registered
Q2.... Can i use that money to register the flat that I have purchased and claim relaxation in 80C while filing ITR....
The 50% transaction of ancestral property is to be expected in this financial year, the remaining in the next...
Thanx in adv
A) Rate of LTCG over the sell of land is 20% after indexation, and not 10% as mentioned by you.
B) Yes, you are eligible for exemption u/s. 54F of IT act, by investment of the sell proceeds in any another house property.
CAclubindia
