Suppose Mr. A has purchased an underconstruction flat for Rs. 30 lakhs. It has been more than 1 year since purchase. The flat is not ready yet and Mr. A has decided to sell that flat and move to another ready to move in house. The cost of underconstruction flat has rose to Rs. 40 lakhs.
If he buys ready to move in flat for Rs. 40 lakhs (the amount for which he is selling that underconstruction flat ), does he need to pay income tax or capital gain tax on Rs. 10 lakhs income?
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