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Selling my house and captial gain tax

Balaji Subbu (SAP FICO) (220 Points)

21 January 2017

Dear Professional Friends

a) Aug 2013- Completed Sales Agreement with Builder for an Apartment (in Bangalore)

b) No Bank loan and I paid all the amount. June2014- Got the Possession and living in the house

c) Still so far I have NOT registered my house

d) Within Feb2017, I will sell this present house for Rs39-Rs42L. From this sales amount, I may or may not purchase another house within Dec 2017

e) Original Cost Rs 37+ Interiors Rs3L = TOTAL Rs40L

Please any one of you clarify...

(1) how much I should PAY as capital gain tax?

(2) How can I avoid this capital gain tax?

(3) This is only one house I have

(4) This house is purchased in the by myself & by wife (Joint Owners) & both of us are NOT going any jobs (Age 51yrs & 49 yrs)

Adv thanks for the help.

regards Balaji Subbu

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4 Replies

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 22 January 2017

You have not registered the house in your name? How does that work? Confusing...!!!

You have only the possession??

Please clear it. There is lack of clarity.

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Suresh Pai S (Tax Consultant) (1029 Points)
Replied 22 January 2017

Assuming that the sale deed has been executed in your name,

It seems like you need not pay any tax on capital gain because the margin seems to be pretty low. Assuming that you are selling the house for 42 lakhs , your indexed cost of acquisition and improvements will exceed sale consideration and you are likely to incurr long term capital loss.

A clear demonetization effect on the sale value.. hm

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Balaji Subbu (SAP FICO) (220 Points)
Replied 22 January 2017

Thank you Mr Suresh Pai for your wonderful advise. Please note the following and let me have your inputs

(1) Aug 2013- Completed Sales Agreement with Builder for an Apartment (in Bangalore) (sales deed). Out of 4000 houses in my apt, so many of owners still NOT registered & living in that houses.

(2) I have proof (Sales Deed with my Builder) for BASIC COST of Rs37L and I have NO PROOFS for Interiors Rs3L expenditures, so how can I proove -I will get ONLY SMALL amount of profit? or loss?

Adv Thanks

regards

Balaji Subbu