Please work out the following capital gain -
Date of Purchase Resi. Hous. Property 10.10.2012 Rs. 120000
Renovation expenses In November 2012 Rs. 10000
Sale Date of above house property Feb 2013 Rs. 175000
I have made construction on my N A Plot up to March 2013 Rs. 500000 (By Housing Loan from SBI)
please answer
1. How much capital gain i have to pay ?
2. how to avoid this gain (any benefit I will receive on new construction on my plot) ?
Since it is sold under 3 years, indexation shall not be available. Short term capital gain shall be 35,000/-
| Sale Consideration | 1750000 |
| Less: Cost of Acquisition | 120000 |
| Less: Cost of Improvement | 10000 |
|
Short Term Capital Gain |
45000 |
Please note that if the property has been held for less than 36 months from the date of acquisition, the resulting gains shall be termed as short-term capital gains (STCG).
Further, since there is no avenue whereby an exemption from STCG can be availed, the entire STCG shall be taxable as per the applicable tax slab rate.
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