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Long Term Capital Gain on residential property

Chinnappan D M (Consultant) (96 Points)

09 February 2011

I have sold a residential property brought in the year 1980 for Rs.80 lacs. The indexed value of the property comes to Rs.50 lacs and the LTCG is 30 lacs. I have purchased a new flat for R.40 lacs from out of this sale.

Am I liable to pay any Income tax for LTCG?

How to show this while filing Individual income tax retrun ?

Under what head it appears in the filing as I do not find any head other than "other income"

Under e filing there is no seperate coloumn for capitl gain head.

Can anyone suggest the way how I can show this in the e filing return.

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8 Replies

Rachit (Ca-Final Article.) (565 Points)
Replied 15 February 2011

Sir you are not liable for Paying any tax As your capital gain Is totally Exempted U/s 54 of the income tax Act 1961,

and as you sad that you are not able to find any column for CAPITAL GAIN so i think you are filing either ITR-1 so you have to file ITR-4 ..........

In that on Page 14 in B Point At 3 you canm write your Details and can uploand your Return...........

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Rachit (Ca-Final Article.) (565 Points)
Replied 15 February 2011

Sir your Capital gain Is Exempt U/s 54 of the income tax Act-1961 and you will not find this option in ITR-1 for this you can file ITR-2 and ITR- 4 For the same.

Rachit (Ca-Final Article.) (565 Points)
Replied 15 February 2011

Sir you can file iTR-2 for the same as option of CG is not available in ITR-1 and you can Claim exemption of your WHOLE cAPITAL gAIN U/s 54 Of the Income Tax Act-1961

1 Like

sumithamohan (Accountant) (29 Points)
Replied 15 February 2011

Dear All,

Kindly help me to solve my following query.

One person sold house property Rs.885000/- for 13.04.2009. He has acquired the property dated 26/08/2006 at Rs.433000/-. If person purchase the new house at 14.4.2010 at Rs.1225000/.

Can availe the capital gain excemption for financial year 2009-2010. Suggest me the way by which person can reduce his taxable income.

Thaks in advance.

Regards.

Sumitha Mohan

Chinnappan D M (Consultant) (96 Points)
Replied 16 February 2011

Thank veru much Mr. Rachit for the info. I was not aware of the !TR2,3,4 can also be filed by individuals

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Rachit (Ca-Final Article.) (565 Points)
Replied 16 February 2011

MR.Sumit Mohan

in respose to your query as per the details provided by you in this case the person is not liable for any exemption in capital Gain

because as per the Income Tax Act 1961, An Asset is sad to be Long Term capital Assets Sec2(14)

if such assets is held by the assessee for more than 3 years as in given case the asset is HELD FOR LESS THAN 3 years so in the given case the gain is taxable as short term capital gain..........

so he is liable to pay tax at his full gain

But he can reduce his taxable liability if his normal income is less than slab rate so he can do a tax saving on remaining Slab Rate Amount after deducting his normal Income as STCG other than U/sa111A is taxable as normal income as same rate of Slab rate

so you can reduce your capital gain with remainig slab rate............

Ex:-Slab 160000

STCG 250000

Normal Income :-60000

So in this case he can do a tax saving of STCG for Rs.100000

udaya kumar (aee) (21 Points)
Replied 19 January 2012

sir,

can i invest in 2 properties, 1 flat and a site to avoid capital gains tax

uday

jay (trainee) (36 Points)
Replied 25 September 2012

hey rachit my client has sold his 3rd house property and purchased the 3rd new house property within 3 months and that too within the same financial year can he avail capital gains tax exepmtion or not?? please help me out yaar got to file return of my client before 30th september

regards

jay bhayani