Mihir (Wealth Manager) (5293 Points)
02 February 2017As per Budget 2017, the LTCG on immoveable property has been reduced to 2 years from 3 years.
When will this rule be applicable?
And what about the mandatory holding period of new property for 3 years ? Has holding period too has been reduced to 2 years ?
Thanks
Nikhil Sharma
(Government Service)
(539 Points)
Replied 02 February 2017
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.
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 02 February 2017
Hi,
Agree with nikhil sharma
The budget is for FY 2017-18 so the amendment is applicable from FY 2017-18.
Kalki Vital Narayanam
(CA Final Student)
(121 Points)
Replied 02 February 2017
This Rule will be applicable from FY 2017-18 i,e; AY 2018-19
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 09 February 2017
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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??
Nikhil Sharma
(Government Service)
(539 Points)
Replied 11 February 2017
Section 54 , 54B, 54D, 54F, 54G
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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?
Nikhil Sharma
(Government Service)
(539 Points)
Replied 11 February 2017
Holding period of 3 years is for the new property which you have to purchase to get your capital gains exempted from tax.
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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?
Nikhil Sharma
(Government Service)
(539 Points)
Replied 11 February 2017
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.
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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!!
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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!!
Ishan Kakkar
(Others)
(58 Points)
Replied 11 February 2017
| 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!!
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