Need clarity on ltcg on property

This rule will be applicable from financial year 2017-18. 

There are no amendments in those exemptions sections. So that mandatory holding period is still 3 years.

Hi,

Agree with nikhil sharma

The budget is for FY 2017-18 so the amendment is applicable from FY 2017-18.

Thanks Nikhil and Viral.

This Rule will be applicable from FY 2017-18 i,e; AY 2018-19

 

Originally posted by : Nikhil Sharma
	This rule will be applicable from financial year 2017-18.  There are no amendments in those exemptions sections. So that mandatory holding period is still 3 years.

Hello!

Can you pls. tell as to which exemption sections are you talking about in view of this 3 years holding perriod??

Section 54 , 54B, 54D, 54F, 54G

Originally posted by : Nikhil Sharma
	Section 54 , 54B, 54D, 54F, 54G

So, you mean to say that we still need to hold the properties for 3 years to be eligible for LTCG?

Holding period of 3 years is for the new property which you have to purchase to get your capital gains exempted from tax.

Originally posted by : Nikhil Sharma
	Holding period of 3 years is for the new property which you have to purchase to get your capital gains exempted from tax.

But, then what about the announcement in the Budget about this holding period reduced to 2 years?

These are two different things :

One holding period is of the property which you have sold i.e the one on which capital gains are being calculated . There is amendment in this holding period. Property being sold which was held for more than 2 years will be taxable as long term capital gains.

To get these capital gains exempt , you have to invest in different kinds of properties mentioned as per those exemption sections. If  you transfer the new property you have purchased before 3 years then your exemption is withdrawn and your exempted capital gains become taxable.So  there is mandatory 3 year holding period of new property . You are mixing up this holding period with the one mentioned in first para. There is no amendment in this 3 year holding period.

Hope its clear now.

Originally posted by : Nikhil Sharma
	These are two different things :One holding period is of the property which you have sold i.e the one on which capital gains are being calculated . There is amendment in this holding period. Property being sold which was held for more than 2 years will be taxable as long term capital gains.To get these capital gains exempt , you have to invest in different kinds of properties mentioned as per those exemption sections. If  you transfer the new property you have purchased before 3 years then your exemption is withdrawn and your exempted capital gains become taxable.So  there is mandatory 3 year holding period of new property . You are mixing up this holding period with the one mentioned in first para. There is no amendment in this 3 year holding period.Hope its clear now.

Thanks a lot! :)

Yes, it's clear now!!

Originally posted by : Nikhil Sharma
	These are two different things :One holding period is of the property which you have sold i.e the one on which capital gains are being calculated . There is amendment in this holding period. Property being sold which was held for more than 2 years will be taxable as long term capital gains.To get these capital gains exempt , you have to invest in different kinds of properties mentioned as per those exemption sections. If  you transfer the new property you have purchased before 3 years then your exemption is withdrawn and your exempted capital gains become taxable.So  there is mandatory 3 year holding period of new property . You are mixing up this holding period with the one mentioned in first para. There is no amendment in this 3 year holding period.Hope its clear now.

Thanks a lot! :)

Yes, it's clear now!!

Originally posted by : Nikhil Sharma
	These are two different things :One holding period is of the property which you have sold i.e the one on which capital gains are being calculated . There is amendment in this holding period. Property being sold which was held for more than 2 years will be taxable as long term capital gains.To get these capital gains exempt , you have to invest in different kinds of properties mentioned as per those exemption sections. If  you transfer the new property you have purchased before 3 years then your exemption is withdrawn and your exempted capital gains become taxable.So  there is mandatory 3 year holding period of new property . You are mixing up this holding period with the one mentioned in first para. There is no amendment in this 3 year holding period.Hope its clear now.

Thanks a lot! :)

Yes, it's clear now!!