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my own house want to sale ,whether it attract Capital gain ?

suresh (service) (151 Points)

23 July 2008

I want to sale my own house , whether it attract capital gain tax.? what is the tax saving remedies.

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2 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 23 July 2008

It will. To get exemption, it should be a longterm capital asset (held for more than 36 months), the sale proceeds of which is invested, atleast to the extent of capital gain, in purchase of new residential property within a period of one year before the sale or two years after the sale or consruct a residential house within three years of sale and retain the new property at least three years from the date of acquisition.

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CA Hemant T Dewani (Chartered Accountant) (3356 Points)
Replied 23 July 2008

S No.	Section	54
1	Kind of asset transferred	Long-Term Capital Asset being House Property used for residential purpose
2	Eligible Assessees	Individual & HUF
3	Condition of period of holding original Asset	3 Years
4	Condition of utilization of consideration	Purchase of Residential Housewithin 2 years after or 1 year prior to date of transfer; or construction of residential house within 3 years from the date of transfer
5	Exempt Amount	The amount of gainor, the cost of new asset, whichever is less
6	Other requirements	See Notes 1, 2 & 4

Part II

S No.	Section	54F	54G	54GA
1	Kind of asset transferred	Any long-term capital asset other then residential house	Land or Building or any right therein or Plant or Machinery in Urban Area used for the business	Land or Building or any right therein or Plant or Machinery in Urban Area used for the business
2	Eligible Assessees	Individual & HUF	ALL	ALL
3	Condition of period of holding original Asset	1 Year for Shares, Listed Securities, Units of UTI/Mutual Fund specified u/s 10(23D), Zero-coupon bonds, 3 years for other capital assets	No period specified	No period specified
4	Condition of utilization of consideration	Purchase of Residential House within 2 years after or 1 year prior to date of transfer; or construction of residential house within 3 years from date of transfer	Acquire similarassets & incur expenses on shifting original asset, within 1 year before, or 3 years from the date of transfer	Acquire similar assets & incur expenses on shifting original asset, within 1 year before, or 3 years from the date of transfer.
5	Exempt Amount	Refer Note No. 5	The amount of gain or the aggregate cost of new asset, and shifting expenses, whichever is lower	The amount of gain or the aggregate cost of new asset, and shifting expenses, whichever is lower.
6	Other requirements	Must not own morethan 1 residential house other than the new asset on the date of transfer of original asset; See Notes 2, 3, 4	Must have been shifted to non urban area; See Notes 1 & 2	Must have been shifted to Special Economic Zone; See Notes 1 & 2