As per Wikipedia A capital gain is a profit that results from a disposition of a capital asset, such as stock, bond or real estate, where the amount realized on the disposition exceeds the purchase price. The gain is the difference between a higher selling price and a lower purchase price. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price. Capital gains may refer to “investment income” that arises in relation to real assets, such as property; financial assets, such as shares/stocks or bonds; and intangible assets.

Frequently Asked Questions on Taxation of Capital Gains in India

Q.1 What incomes are charged to tax under the head “Capital Gains”?

Ans: Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”.​

Q.2 What is the meaning of capital asset?

Ans: Capital asset is defined to include:

a) Any kind of property held by an assesse, whether or not connected with business or profession of the assesse.

b) Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992.

However, the following items are excluded from the definition of “capital asset”:

  • Any stock-in-trade, consumable stores, or raw materials held by a person for the purpose of his business or profession.

E.g., Motor car for a motor car dealer or gold for a jewellery merchant, are their stock-in-trade and, hence, they are not capital assets for them.

  • Personal effects of a person, that is to say, movable property including wearing apparels (*) and furniture held for personal use, by a person or for use by any member of his family dependent on him.

(*) However, jewellery, archeological collections, drawings, paintings, sculptures, or any work of art are not treated as personal effects and, hence, are included in the definition of capital assets.

  • Agricultural Land in India, not being a land situated:
  • Within jurisdiction of municipality, notified area committee, town area committee, cantonment board and which has a population of not less than 10,000;

* Within range of following distance measured aerially from the local limits of any municipality or cantonment board:

*​ not being more than 2 KMs, if population of such area is more than 10,000 but not exceeding 1 lakh;

* not being more than 6 KMs , if population of such area is more than 1 lakh but not exceeding 10 lakhs; or

* not being more than 8 KMs , if population of such area is more than 10 lakhs.

Population is to be considered according to the figures of last preceding census of which relevant figures have been published before the first day of the year.

  • 6½% Gold Bonds, 1977 or 7% Gold Bonds, 1980 or National Defence Gold Bonds, 1980 issued by the Central Government.
  • Special Bearer Bonds, 1991, issued by the Central Government
  • Gold Deposit Bonds issued under Gold Deposit Scheme, 1999.
  • Deposit certificates issued under the Gold Monetisation Scheme, 2015.​

Following points should be kept in mind :

  • The property being capital asset may or may not be connected with the business or profession of the taxpayer. E.g. Bus used to carry passenger by a person engaged in the business of passenger transport will be his  Capital asset.
  • Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 will always be treated as capital asset, hence, such securities cannot be treated as stock-in-trade. ​

Q.3 What is the meaning of the term ‘long-term capital asset’?

Ans: Any capital asset held by a person for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset.

However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months instead of 36 months.

In case of unlisted shares in a company, the period of holding to be considered is 24 months instead of 36 months.

With effect from Assessment Year 2018-19, the period of holding of immovable property (being land or building or both), shall be considered to be 24 months instead of 36 months.

Q.4 What is long-term capital gain and short-term capital gain?

Ans: Gain arising on transfer of long-term capital asset is termed as long-term capital gain and gain arising on transfer of short-term capital asset is termed as short-term capital gain. However, there are a few exceptions to this rule, like gain on depreciable asset is always taxed as short-term capital gain.​​​

Q.5 Why capital gains are classified as short-term and long-term?

Ans: The taxability of capital gain depends on the nature of gain, i.e. whether short-term or long-term. Hence to determine the taxability, capital gains are classified into short-term capital gain and long-term capital gain. In other words, the tax rates for long-term capital gain and short-term capital gain are different. Similarly, computation provisions are different for long-term capital gains and short-term capital gains.​

Q.6 How to compute long-term capital gain?

​​Ans: Long term capital gain arising on account of transfer of long-term capital asset will be computed as follows:

Particulars Rs.
Full value of consideration (i.e., Sales consideration of asset) XXXXX
Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission,  etc.)  

(XXXXX)

Net sale consideration XXXXX
Less: Indexed cost of acquisition (*) (XXXXX)
Less: Indexed cost of improvement, if any (*) (XXXXX)
Long-Term Capital Gain XXXXX

Indexed cost of acquisition is computed with the help of following formula :

Cost of acquisition × Cost inflation index of the year of transfer of capital asset
Cost inflation index of the year of acquisition

Indexed cost of improvement is computed with the help of following formula :

Cost of improvement × Cost inflation index of the year of transfer of capital asset
Cost inflation index of the year of improvement

Q.7 How to compute short-term capital gain?

Ans: Short-term capital gain arising on account of transfer of short-term capital asset is computed as follows:

Particulars Rs.
Full value of consideration (i.e., Sales value of the asset) XXXXX
Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission, etc.)

(XXXXX)

Net Sale Consideration XXXXX
Less: Cost of acquisition (i.e., the purchase price of the capital asset) (XXXXX)
Less: Cost of improvement (i.e., post purchase capital expenses incurred  on  addition/improvement to the capital asset)

(XXXXX)

Short-Term Capital Gain XXXXX

Q.8 ​ Is the benefit of indexation available while computing capital gain arising on transfer of short-term capital asset?

​​Ans: Indexation is a process by which the cost of acquisition/improvement of a capital asset is adjusted against inflationary rise in the value of asset. The benefit of indexation is available only in case of long-term capital assets and is not available in case of short-term capital assets.​​

Q.9 In respect of capital asset acquired before 1st April, 2001 is there any special method to compute cost of acquisition?

Ans: ​​Generally, cost of acquisition of a capital asset is the cost incurred in acquiring the capital asset. It includes the purchase consideration plus any expenditure incurred exclusively for acquiring the capital asset. However, in respect of capital asset acquired before 1st April, 2001, the cost of acquisition will be higher of the actual cost of acquisition of the asset or fair market value of the asset as on 1st April, 2001. This option is not available in the case of a depreciable asset.​

Q.10 If any undisclosed income [in the form of investment in capital asset] is declared under Income Declaration Scheme, 2016, then what should be the cost of acquisition of such capital asset?

​​Ans: The fair market value of the asset as on 1st June, 2016 [which has been taken into account for the purpose of said declaration Scheme, 2016] shall be deemed as cost of acquisition of the asset. [This provision is applicable w.e.f. 1-4-2017]

Q.11 As per the Income-tax Law, gain arising on transfer of capital asset is charged to tax under the head “Capital gains”. What constitutes ‘transfer’ as per Income-tax Law?

Ans: Generally, transfer means sale, however, for the purpose of Income-tax Law “Transfer”, in relation to a capital asset, includes:

i. Sale, exchange or relinquishment of the asset;

ii. Extinguishment of any rights in relation to a capital asset;

iii. Compulsory acquisition of an asset;

iv. Conversion of capital asset into stock-in-trade;

v. Maturity or redemption of a zero coupon bond;

vi. Allowing possession of immovable properties to the buyer in part performance of the contract;

vii. Any transaction which has the effect of transferring an (or enabling the enjoyment of) immovable property; or

viii. Disposing of or parting with an asset or any interest therein or creating any interest in any asset in any manner whatsoever.

Q.12 What are the provisions relating to computation of capital gain in case of transfer of asset by way of gift, will, etc.?

​​Ans: Capital gain arises if a person transfers a capital asset. section 47 excludes various transactions from the definition of ‘transfer’. Thus, transactions covered under section 47 are not deemed as ‘transfer’ and, hence, these transactions will not give rise to any capital gain.  Transfer of capital asset by way of gift, will, etc., are few major transactions covered in section 47. Thus, if a person gifts his capital asset to any other person, then no capital gain will arise in the hands of the person making the gift (*).

If the person receiving the capital asset by way of gift, will, etc. subsequently transfers such asset, capital gain will arise in his hands. Special provisions are designed to compute capital gains in the hands of the person receiving the asset by way of gift, will, etc. In such a case, the cost of acquisition of the capital asset will be the cost of acquisition to the previous owner and the period of holding of the capital asset will be computed from the date of acquisition of the capital asset by the previous owner.

(*) As regards the taxability of gift in the hands of person receiving the gift, separate provisions are designed under section 56​​. ​

Q.13 I have sold a house which had been purchased by me 5 years ago. Am I required to pay any tax on the profit earned by me on account of such sale?

Ans: ​​House sold by you is a long-term capital asset. Any gain arising on transfer of capital asset is charged to tax under the head “Capital Gains”. Income-tax Law has prescribed the method of computing capital gain arising on account of sale of capital assets. Thus, to check the taxability in your case, you have to compute capital gain by following the rules laid down in this regard, and if the result is gain, then the same will be liable to tax.​

Q.14 Are any capital gains exempt under section 10?

​​​Ans: Section 10 provides list of incomes which are exempt from tax Amongst these the major exemptions relating to capital gains are listed below:

Section 10(33) : Long-term or short-term capital gain arising on transfer of units of Unit Scheme, 1964 (US 64) (transferred on or after 1-4-2002).

Section 10(37) : An individual or Hindu Undivided Family (HUF) can claim exemption in respect of capital gain arising on transfer of agricultural land situated in an urban  area by way of compulsory acquisition. This exemption is available if the land was used by the taxpayer (or by his parents in the case of an individual) for agricultural purpose for a period of 2 years immediately preceding the date of its transfer .

Section 10(37A) : An individual or Hindu Undivided Family (HUF) can claim exemption in respect of capital gain arising on transfer of land or building or both under Land Pooling Scheme under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015. This exemption is available if individual or HUF was owner of such land as on 02-06-2014. [Inserted by the Finance Act 2017 w.e.f. 01-04-2015].

Section 10(38) : Long-term capital gain arising on transfer of equity shares or units of equity oriented mutual fund (*) or a unit of a business trust other than a unit allotted by the trust in exchange of shares of a special purpose vehicle as referred to in section 47(xvii), will be exempt from tax, if the following conditions are satisfied:

  • The asset transferred should be equity shares of a company or units of an equity oriented mutual fund or a unit of a business trust other than a unit allotted by the trust in exchange of shares of a special purpose vehicle as referred to in section 47​.
  • The transaction should be liable to securities transaction tax (STT) at the time of transfer.
  • Such asset should be a long-term capital asset.
  • Transfer should take place on or after October 1, 2004.​

Note: Any long-term capital gain arising from a transaction undertaken in recognized stock exchange located in an International Financial Service Center shall be exempt from tax. Such exemption is available if such transaction is undertaken in foreign current and even if no STT is paid on such transaction.

Long term capital gain exemption on transfer of equity share acquired or on after 01-10-2004 shall be available only if the acquisition of share is chargeable to STT. However, the exemption shall continue in genuine cases where the STT could not have been paid like acquisition of share in IPO, FPO, bonus or right issue by a listed company, acquisition by non-resident in accordance with FDI policy, etc. [Inserted by Finance Act 2017]

(*) Equity oriented mutual fund means a mutual fund specified under section 10(23D) and 65% of its investible funds, out of total proceeds of such fund are invested in equity shares of domestic companies.​

Q.15 At what rates capital gains are charged to tax?

Ans: For provisions in this regard check tutorials on “Tax on Short-Term Capital Gains and Tax on Long-Term Capital Gains”.​​

Q.16 Is there any benefit available in respect of re-investment of capital gain in any other capital asset?

​​​​​Ans: A taxpayer can claim exemption from certain capital gains by re-investing the capital gain into specified asset. The following table highlights the assets in respect of which the benefit of re-investment is available:

Section under which bene​​fit is available Gain eligible for claiming exemption Asset in which the capital gain is to be re-invested to claim exemption
section 54​ Long-term capital gain arising on transfer of residential house property. Gain to be re-invested in purchase or construction of one residential house property in India.
section 54B Long-term or short-term capital gain arising on transfer of agricultural land. Gain to be re-invested in purchase of agricultural land.
section 54EC Long-term capital gain arising on transfer of any capital asset. Gain to be re-invested in bonds issued by National Highway Authority of India or by the Rural Electrification Corporation Limited.
​ Section 54EE Long-term capital gain arising on transfer of any capital asset. Gain to be re-invested in units of specified fund, as may be notified by Govt. to finance start-ups.
section 54F Long-term capital gain arising on transfer of any capital asset other than residential house property. Net sale consideration to be re-invested in purchase or construction of one residential house property in India.
section 54D Gain arising on transfer of land or building forming part of industrial undertaking which is compulsorily acquired by Government and was used for industrial purpose for a period of 2 years prior to its acquisition. Gain to be re-invested to acquire land or building for industrial purpose.
section 54G Gain arising on transfer of land, building, plant or machinery in order to shift an industrial undertaking from urban area to rural area Gain to be re-invested to acquire land, building, plant or machinery in order to shift the industrial undertaking from an urban area to a rural area
section 54GA Gain arising on transfer of land, building, plant or machinery in order to shift an industrial undertaking from urban area to any Special Economic Zone Gain to be re-invested to acquire land, building, plant or machinery in order to shift the industrial undertaking from urban area to any Special Economic Zone.
section 54GB​ Long-term capital gain arising on transfer of residential property (a house or a plot of land). The transfer should take place during 1st April, 2012 and 31st March 2017. However, in case of investment in “eligible start-up”, sunset limit of 31st march 2017 is extended to 31st march 2019.​ The net sale consideration should be utilised for subscription in equity shares of an “eligible company”.  ​W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company​

In order to claim the exemption on account of re-investment in various situations as discussed above, other conditions specified in the respective sections should be satisfied and the re-investment should be made within the period specified in the respective sections. ​

​Q.17 Are there any bonds in which I can invest my capital gains to claim tax relief?

​​​Ans: Yes, as per section 54EC​ you can claim tax relief by investing the long-term capital gains in the bonds issued by the National Highway Authority of India or by the Rural Electrification Corporation Limited. The investment should be made within a period of 6 months from the date of transfer of capital asset and bonds should not be redeemed before 3 years. This benefit cannot be availed in respect of short-term capital gain. Maximum amount which qualifies for investment will be Rs. 50,00,000. Thus, deduction under section 54EC​ cannot be claimed for more than Rs. 50,00,000. ​

Q.18 What is the meaning of stamp duty value and what is its relevance while computing capital gain in case of transfer of capital asset, being land or building or both?

Ans: Stamp duty value means the value adopted or assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty.

As per section 50C​​, while computing capital gain arising on transfer of land or building or both, if the actual sale consideration of such land and/or building is less than the stamp duty value, then the stamp duty value will be taken as full value of consideration, i.e., as deemed selling price and capital gain will be computed accordingly.

(Source- Income Tax India Website , Republished with amendments)

More Under Income Tax

Posted Under

Category : Income Tax (25488)
Type : Articles (14962) Featured (4125)

103 responses to “Taxation of Capital Gain in India – FAQs”

  1. nalish says:

    mother sale her property to his son no cash or cheque transaction during the registry but in registry paper so paid 200000=00 what can i do for this mater.Son is fully dependent on mother he is a student aged about 26 year

    • PMR. GOWRISSANKAR says:

      capital gain has to be paid by mother because in recent case law it was held that even if father by mistake makes a sale deed instead of gift deed to her daughter, capital gain will arise.

  2. Aniruddha deshpande says:

    We sale our plot located in pune for 10 lakhs but govt value is 50lakhs… we really get only 10 lakhs… there is some problem related to plot… we even didnt know were is actual plot. Its similar to khosla ka ghosla movie. One prop. Consultant suggest us to sale that at 10lakhs. plz tell about capital gain tax provision… and suggest solution to come out of this… this transaction done in fy 2012-13.

    We actually get only 10lakhs amount…

  3. Ramesh KC says:

    Question : Whether the house can be treated as completed for income tax purpose under section 54 for which application for building completion has been made within the period of 3 Year but has not been received the certificate.?????

  4. Louis says:

    Hi,

    Our ancestor property was was acquired by government for some of the development project and paid us the amount of 25,000 per acre of land in 1998. We filed a case in 1998 and currently(2017) court asked the government to pay us 400000 per Acre of land plus interest rate from 1998 to 2017. Based on the court order government is paid the amount to court and in-turn to us without deducting any tax or TDS. Could you please suggest me how we need to calculate the income tax or Capital gain tax and also how to save the income tax ?

    Thanks & Regards,
    Louis

  5. narinder paul says:

    I purchased flat in 2012 by bank loan of rs 30.00 lacs .total cost rs 53 lacs. and paid interest of rs. 2.45,2.86,93000 in 12-13,13-14 and 14-15 respectively. I availed tax relief u/s 24 b by deducting interest from income i.e rs. 1.5 lacs in 12-13 ,1.50 in 13-14 and 93000 in 14-15.

    I sold flat in 14-15 in Rs.65.00 lacs. while calculating capital gain, whether I should add total interest of 6.24 lacs in flat cost. or
    only 6.24-3.93=2.31 lacs (I have already availed rebate for interest of rs. 3.93 lacs). whether interest benefit can be availed in both section u/s 24 b and sec 54

  6. Vishal says:

    Hi,
    I have sold inherited residential house on 19th July 2014 and deposited the full consideration amount in SBI – Capital Gain Saving Account. SInce I couldn’t purchase the property, will any Tax Liability be due..Would interest be paid on tax amount..

  7. varun says:

    Dear Team,
    my father had a residential plot in Haryana, which we got in housing scheme of HUDA( Haryana Urban Development Authority) worth rupees 3 lac around 12 years ago. now we have sold out the plot in 28 lacs. As per law we have to invest the money in residential property. i just want to know can we buy new property on General power of attorney, or it should have registry? As most of the properties in unauthorized colonies of delhi (those are in the list of, delhi govt’s tentative colonies) are available on GPA only.

  8. Kunal says:

    In the year 1992, we acquired some land (around 5 katha) by gift deed from government of West Bengal for rehabilitation purpose.
    After that, we built our home on that land. (Don`t have a clue about construction cost, done by my dad and he is no more) Now, we are planning to sale that property to someone else. (Year 2017) I`m pretty much sure that property can be sold after 10 years of acquisition, but not sure about the tax amount to be paid!
    Is there any capital gain tax involved here? How to calculate that? Whom to take help from regarding this scenario?
    Thanks in advance for your help.

  9. K VISWANATH says:

    The provisions of ITax on Capital Gain are as under:
    1.Purchase of another Residential Property within 1 year before or 2 years after the due date of transfer of the Property sold and/or
    2.Construction of Residential house Property within a period of 3 years from the date of transfer/sale of property
    My query is can I avail CG exemption in the following circumstances:
    a. I have constructed a Flat and got completed during the AY 2017-18, by obtaining bank loan and other savings.
    b. During the current year 2017-18 (AY 2018-19), I wish to sell my old flat acquired 12 years ago,
    c. Can I avail the benefit since the construction of my house got completed ONE YEAR BEFORE the date of sale.
    d. Whether the first clause is applicable only for purchase of residential property and not for construction of a residential property.
    e. The doubt arises because, from the wordings given in the second clause, it appears that construction is allowed only, if it is commenced after the sale.
    Your learned views pl.

  10. s.k.jha says:

    Reply no 8

  11. Saby says:

    Suppose if I now buy a plot(with cost 40 lacs after taking a loan from bank) and register it on guidance value( 20 lacs). After 1 year if I build a house on that plot (cost is around 20 lacs). After 10 years, after completing the loan, if I sell that house (with 1 crore) how the long term capital gains will be calculated ? I know that capital gains are calculated on total profit – total cost. In this case the capital gain should be calculated on 40 lacs profit. But how will I prove that time that the construction of the house took 20 lacs. At that point of time, I could say that construction of my house took 40 lacs and so capital gains will be calculated on (1,00,00,000 – (40,00,000 + 40,00,000)) or 20 lacs.
    How actually the capital gain calculation happens in this scenario ?
    Will I have to furnish some document regarding the building construction cost ?

  12. Ainakshi Rathi says:

    I have an issue. My client has paid subscription fee in 1996-97 and such money was converted into unlisted shares in 2007-08. In 2016,he sold such shares. Which year cab be considered for indexed cost of acquisition 1996-97 or 2007-08? Kindly help me with supportive evidence. I’d be glad to receive help. Thank you in anticipation.

  13. Ashok Gahlawat says:

    Hi Sir,
    I have a query regarding capital gains on gift of immovable property.
    Scenario:
    My maternal uncle (chachaji) wants to gift me a flat which is currently under construction. He has not received possession of the flat yet but is expected to get it in a couple of months. He will gift it to me post getting possession. Flat was booked by him around 4 years back. I plan to sell of the flat within a year as it is in Noida while I have now shifted to Pune where I would like to purchase a flat.
    Query:
    1. Is long term capital gain or any other sort of tax applicable on this gift.
    2. When I get possession of this flat from my uncle (post re-registration) then if I sell it within a year then will it come under Short Term Capital Gain or Long Term Capital Gain.
    3. If my uncle sells off the flat and gifts me the proceeds then is the proceeds tax exempted ?
    4. What is a better option of the following:
    a. gift flat to me and then I can sell it off within a year
    b. sell the flat and gift the proceedings to me in online transfer
    c. gift the flat/proceedings to my father (chachaji’s elder brother) and my father can then transfer the amount to me as gift.

    Please advise.

    • Dear Sir,
      I am having a LTCG of 50 lacs (from selling of a Plot), I am paying 20% i.e., 10 lacs as Tax.
      Can I ask for any refund in IT return.
      If so, how much I wil get back
      I am an NRI.
      I do not have any income in India.
      thanks and with regards,

  14. Sanjay Pani says:

    Sir,
    The inherited land from my grand father has given by me to a real estate firm to build duplex houses and my share is one duplex house whose cost is. rs 56 lakhs and will receive rs 14 lakhs as consideration money.
    For clarity the inherited land offerd for development during April – 2014 to build duplex houses and the possession will be within March – 2017.
    My queries are whether any capital gain tax is liable, and if it is , then how much.
    Is there any ways to reduce the tax burden.
    Please answer, Thanks

  15. Sumiit Bhatia says:

    I want to sell the residential apartment which is on my dad’s name and would like to buy new residential apartment. The old residential is long term. In order to exempt tax under sec 54 capital gain, can i purchase new house under both the names for my dad and me?

  16. N S VENKATA SUBRAMANIAN says:

    Is it necessary to purchase 54EC bonds in one lot of Rs.50 lakhs or purchased in 5 lots of 10 lakhs each on applications with different joint holders within 6 calendar months to claim exemtion for capital gains?

  17. Ravindranath says:

    My doubt is regarding 54 &54ec .I sold land for rs.1cr andlongterm capital gain is rs.25lakhs.
    should I invest rs.25lakhs or rs.1cr in nha bond whichis limited to rs50lakhs.
    investment in new house as per 54 need to bers.1.cr
    pl reply me urgently.

    • C,Ravindranath says:

      54F says NET SALES CONSIDERATION to be invested in new residential House etc

      but 54EC says only Capital Gain(afterconsidering indexed cost) to be invested in bods.
      PLEASE CLARIFY since a lot of difference in the values.

  18. vishwajeet says:

    Hello my name is vishwajeet . I have purchased land from father for rs 800000
    and stamp duty is 24 00000 then for calculating capital gain which value is considered rs 800000 or rs 2400000 please give me solution…

  19. Benjamin White says:

    Hello my name is John Morris from Switzerland but live in United Kingdom,am into property dealer business and also am into petrol pump business and and i want to invest in your country and i hop you can help me to establish my business in your country,and i want to build a gas station,hospital, hotel, school,shopping mall, and i need an empty land or 6 to acre of land to buy if you have any one to sell kindly contact me through my email: johnmorris939@gmail.com

  20. Kalpataru Das says:

    I have gone for a Sale Agreement for property A in April 2016 for an advance of Rs 5L towards a property worth 40L. The Sale Deed & Registration will be executed for Property A in November 2016. In the mean time, i have already received 90% of the payment against Property A and have finalised a new Property B for Rs 50L, the sale deed of the same will be executed in July 2016. Now although there is no Capital gain involved, the sale deed of Property B is happening before the sale deed of Property A. Question: Will the executed Sale Agreement of Property A, which was made in April 2016 mentioning the cost of property to be Rs 40L be legally admitted to calculate my investment in Real Estate in order to negate Long Term Capital Gain?

  21. ramesh babu says:

    If I have booked a flat and got an allotment letter in 2012, registered property in 2014 and possession letter was given in 2016.

    If I sale the property this year will it attract STCG or LTCG tax. Please advise the relevant rule which applies in my case.

  22. umesh shete says:

    I sold MIDC (Maharashtra Industrial Development corpration) plot which is 20 km outside municipal corporation boundary. Am I liable for capital gain?

  23. S G Mani says:

    My wife had 2 adjoining plots and sold the same recently a plot each to a husband and his wife.
    Is she eligible for Capital gain tax benefit if the whole amount which is less than 50lacs is deposited in REC/NHAI bonds, not even considering the indexation benefit?
    Confirm she need not pay any capital gain tax.
    She is otherwise a housewife and has some interest income much lower than the min limit attracting income tax.
    She has neverneeded to file income tax return except last year to claim Refund of TDS deducted due to delay in filing 15H.
    sg mani

  24. Jaswant says:

    Hi,

    I just sold my apartment in Dec2015. Couple of quick questions:

    1. For capital gain calculation should the actual sale value be taken or amount i received after buyer deducted 1% TDS ? I got 94L, selling cost is 94.94L.

    2. Purchase details:

    Date of allotment was 21-Jun-2007, and possession date: 29-Jul-2010.

    Total paid to builder = 4673400/- by Jul 2010, registration-128800/- on 29 Jul 2010.

    Woodwork & electric fittings: 6L in Dec 2010.

    Question: For indexed property cost index of 2007 and indexed modification cost index of 2010 to be used. Kindly confirm?

    3. If the sale cost is coming lesser than total indexed cost, then is it a loss on property ?

    a. if yes then can i claim refund on TDS ? How to calculate relation of loss and refund of TDS amount.

    b. If even after TDS refund loss is more, is there a way to use leftover loss in gaining tax or other benefits in any case ?

    thanks so much,

    Jaswant

  25. Joby George says:

    Sir, please advice

  26. Joby George says:

    Sir, all my transactions both purchase and sell done jointly..myself and wife

  27. Joby George says:

    hello sir,
    I have purchased one flat (F1) on NOV 2011 for 20 Lac and sold it in AUG 2015 for 35 lac, also I have purchased one flat (F2) in nov 2012 for 14 lac and planning to sell it for 20 lac within 6 months.. I have purchased flat (F3) in Nov 2015 for 63 lac out of it 18 lac paid direct by cheque and 45 lac paid through bank loan. can I save capital gain tax for sale of my both flats F1 &F2..capital gain from sale of F2 can be used for home loan pre payment ??

  28. sameer says:

    hello sir,
    please tell me the provision regarding studded jewellery capital gain which was gifted by my father to me.. and
    i have no bill of such jewellery which is nearly 1 kg which made by gold,diamond and many precious stones also

    • Parthiv Mehta says:

      Cost of Acquisition shall be Cost of Acquisition in the hands of Previous Owner by virtu of Section 47 & 49(1). if you dont know the cost then the only way to know its FMV of is to get it valued from a certified valuer. the value reported by such valuer shall be deemed to be its cost of acquisition

  29. Sunil says:

    Hello Sir,

    We have property which was on the name of my father. My father has given the property to us by will (Vasiyatnama) in 2007. Father expired in 2008.

    Till the date we haven’t transferred the bungalow on our name.

    Now if we want to sell our inherited bungalow property and we are interested to sell against cheque payment only. In this situation, we need to know that, in context of Long Term Capital Gain that if we transfer our bungalow on the name of all heir / successor and then we sell it, can we get benefit of new residential proper (provided single property is there) + Bond (50 Lacs) + Indexation for
    every heir ?

    If such benefit are available for every individual, are they available if

    (i) we transfer the name of all heirs (Jointly for this bungalow & then sell it ? OR

    (ii) we make parts of bungalow and then transfer the name of each part on the name of each heir individually & then sell it ?

    Total 3 successor are their i.e.

    1) Mother

    2) Two Brothers

    Please guide us.

    Thanks & Best Regards,

    Sunil Shah

  30. Kamal Singh Dasoni says:

    What if I sold a residential land and invest the whole amount to purchase a residential house?

  31. Jyothish says:

    I sold land and full amount invested in constructed first floor on residential house. Can I claim Exemption.

  32. YOGESH says:

    If father sold urban agriculture land and sale consideration transferred to son account, out of that amount son purchased another urban agriculture land within one year can father take benefit of exemption in such case?

  33. Chandra V says:

    MR ” A” NON RELATIVE GIFTED HIS LAND TO HIS FRIEND “B” ( THE LAND VALUE IS 50,00,000 ), FY 2013-14
    B IS PAID TAX ON GIFT UNDER INCOME FROM OTHER SOURCE FY 13-14
    AND B SOLD THAT PARTICULAR LAND FOR RS 70,00,000 IN YEAR 2015-16,

    IN CALCULATING CAPITAL GAIN FOR MR B IN FY 15-16,
    CALCULATE THE CAPITAL GAIN

  34. Vyas says:

    Let us say, I sold some shares (stock-1) and holding period is less than one year. I have used the complete sale proceeds to buy the shares (stocks-2) again. Is the gain due to selling the stock-1 taxable?

  35. Jose says:

    Sir,
    I will be grateful if you could guide me on following, because I am not getting any clear answer from anyone.

    Our partnership firm has sold an office space (after claiming depreciation, the book value is Rs.10 lacs). We got a sale value of Rs.50 Lacs which we entirely invested in buying another office premises at Rs.58 lacs. Since we acquired another commercial property are we liable to pay capital gain tax ?

    Kindly reply. Thanks and regards.

  36. Rajaram Sawant says:

    I have sold the flat in Mumbai in which my mother is joint owner. I am the first holder & my mother is second holder. I am going to purchased the new flat within the one year span to avoid the capital gain tax. But I have to purchase the flat on my name only. In this case, my mother has to pay capital gain tax or it is exempted. If she is applicable for capital gain tax then how we can avoid the same.

    Thanks and Regards,
    Rajaram Sawant

  37. P S Banerjee says:

    I have filled nil returns for FY 13-14. I have received a scrutiny notice in this letter. As per my lawyer come to know that I have a short term capital gain by selling a land for that year. My question is that short term gain will be added to my income or tax will be charged directly on short term gain?

  38. CPG Unni says:

    I and my wife own a residential house in Trivandrum where we are staying for the past over six years. It was gifted to us by our children about four years back. We have some landed property in Kochi in our name which was acquired by us in 2003 for an amount less than 30 lakhs which we want to sell now for buying a residential house in Chennai. The present estimated cost of the said land may be anything between 2 and 3 crores. Since we already own a residential house, will the sale proceeds of the land to be invested in purchase of a new residential property at Chennai be subjected to tax under LTCG.

  39. Mehul Ved says:

    I had bought Commercial Property in January 2011 (i.e January 2011 is my Date of Allotment) for Rs. 23 Lakhs.

    I registered Agreement for Sale in April 2015 for Amount consideration of Rs. 23 Lakhs which I had paid to the developer in installments from January 2011 till April 2015.

    Now in December 2015 I intend to Sell this property for Rs. 45 Lakhs.

    My queries are:

    1) Whether the difference of (i.e Profit) of Rs. 22 Lakhs is treated as Short Term Capital Gain Tax or Long Term Capital Gain Tax?

    2) How can I save my Taxable amount?

    3) After Selling this commercial property in December 2015, If I buy Residential Property and use this taxable amount of Rs. 22 Lakhs or entire amount of Rs. 45 Lakhs in buying Residential property, will I be exempted from Tax?

    4) If not residential property, then what are the option of saving my tax?

    Regards,
    Mehul Ved

  40. Asif Iqbal Nazir Sayyed says:

    I bought aN agricultural land in 2008 for 165000 and now I am gettinG 1500000 15lakhs then what will be the capital gain.
    and how much tax I must may.
    Pls confirm.
    Thanks

  41. Mayur Jain says:

    My Father had sold a land which he has got under inheritance and now as to calculate capital gain tax on the sale,fair market value of that land as on april 1981is required.
    so please suggest me as to how should I get the fair market value as on april 1981.

    Thanks
    Regards
    Mayur

  42. Mayur Jain says:

    My Father has sold a land which he has got from inheritance and now as to calculte capital gain tax I need fair market value of the land as on april 1981, so please suggest me how should I get fair market value of that land as on april 1981.

    Thanks in advance.

    Regards Mayur

  43. sailee says:

    i purchased a land and plinth on 26/6/2007 fr rs.1281600 and rs.4058400 respctvly.stamp duty value paid is rs.107230 for land and rs.100 for plinth.i sold the property on 10-9-15 for rs.16000000.how do i calculate my capital gains and tax on it

  44. parag says:

    I have bought residential property “A” in 2006-2007 for 25 lacs. I bought another residential property “B” in 2012-2013. Now i want to sell property “A” in 2015-2016 for 180 lacs & buy another property with the capital gains which comes around to 130 lacs after indexation. So can i get exempt from capital gains tax if i buy another residential property against this amount? I am asking because i have property “B” as well.

    Thanks in advance

    Regards

    Parag

  45. Sanjay says:

    Under Section 54, which is the relevant section that is applicable to a corporate body (Pvt. Ltd. Co.) for sale of
    a. residential property?
    b. commercial property?

  46. niranjan says:

    i had purchased a residential plot in 1984 for rs 88,000/-. i sold it on sep 2014 for rs 48 lacks. i intend to purchase a agriculture land from the above income. can i claim exemption of income tax for this long term capital gain . please guide.

  47. Kumar says:

    I have question:

    I have sold an old asset (residential/flat) in APR 2014 and made profit of 5L. Which is considered as capital gain.

    as on today 1st Sep 2015 – I have not invested in NHAI bonds; Did not deposit in capital gain scheme. I am planning to buy a new house next month. I have not yet submitted the tax returns for the FY2014-15 (AY2015016) yet. Can I claim exemption? as I can buy new property in 2yeards from sale date?

  48. Chandra says:

    Hi,

    While calculating capital gain, according to the double deduction on interest, Can we apply indexation on the balance amount (after deducting the interest from the selling price)

    Say, if i bought a house in 2008 at 10lakhs and sold it on 2014 at 25lakhs. I have paid an interest of 6 lakhs during this period(say). What will be the capital gain. Is it 25-6 = 19. Do we have to apply indexation on this 19 lakhs to know the actual capital gain..Please let me know your answer

  49. Chandra says:

    Hi,

    While calculating capital gain, according to the double deduction on interest, is Indexation also applicable.

    Say, if i bought a house in 2008 at 10lakhs and sold it on 2014 at 25lakhs. I have paid an interest of 6 lakhs during this period(say). What will be the capital gain. Is it 25-6 = 19. Do we have to apply indexation on this 19 lakhs to know the actual capital gain..Please let me know your answer

  50. mehta says:

    I have opened an cags account when I sold land . And deposited the full amount in it , now as seeing a downtrend in property I have postponed my plan to buy house for over 3 years . I have plan to shift the amount to capital gain bond as it’s not yet 6 months up I have sold the land , and close the cags need urgent help as last date of filing is on 31st

  51. mehta says:

    I have opened an capital gain account when I sold land . And deposited the full amount in it , now as seeing a downtrend in property I have postponed my plan to buy house for over 3 years . I have plan to shift the amount to capital gain bond as it’s not yet 6 months up I have sold the land , and close the cags

  52. Atul says:

    Hello,

    We had invested in a IIFL Housing finance bonds or NCD’s. What is the tax treatment for the interest income which got credited to my savings bank acc every month?
    Thanks.

  53. sanakdas says:

    sir,Land ( TAXABLE)acquired compulsory by govt,then for an employee will the compensation amount and salary added together for tax? e.g. compensation is 700000 and salary is 500000. total 1200000 is taxable or both the amount will be shown separately. Then form no. tax deduction .will be how much . (minus exemption 150000)..sanak

  54. sanakdas says:

    sir,Land ( TAXABLE)acquired compulsory by govt,then for an employee will the compensation amount and salary added together for tax? e.g. compensation is 700000 and salary is 500000. total 1200000 is taxable or both the amount will be shown separately. Then form no. tax deduction .will be how much . (minus exemption 150000)

  55. Padmini Sriram says:

    Clarification required please:

    After acquiring property (purchased 45 years ago by my parent) through family settlement as a gift, i.e., after the property is transferred to my name (daughter) and if I sell it and use the sale proceeds to pay of my housing loan will Capital Gain tax be applicable on the sale proceeds of my parent’s property since transferred to my name?

  56. Ram says:

    Hi, If one sells a piece of LAND (bought well over 3 years ago) and buys HOUSE out of the proceeds which becomes the primary dwelling (first time home buyer), will there be any tax implication on the capital gains? or there won’t be tax outgo as it is invested immediately into a house.

  57. Bharat Pandya says:

    I have purchase my flat in 1998 at 8 lacs and I would like to sell it out by which I will get 80 lacs in 2015-16.

    Now in 2009 I have purchase one more flat by taking loan of 1crore. If I would like to repay these loan then will it be huge long term capital gain tax I have to bear or not?

    Please advise.

  58. Sneha says:

    Hello,

    Very informative Article.
    My father received 18 lacs in 2015 as the proceeds for the land acquired by the Government in 2004 at his hometown. The land was purchased by his grandfather before 1981 which was initially used for agriculture but was not used for any purpose for many years before acquisition. At the time of acquisition in 2004 the land was in the name of my grandfather who later died in 2005. Since my father is the only legal heir of my grandfather he received the payment for the acquisition of land. Can you please clarify the following points.
    1. What is the income tax implication to him. He is a salaried employee.
    2. The cost of acquisition of the land is not known. How to know the value of the land at 1981 to be used for indexation.
    Thanks.

  59. Srinivas Rao says:

    My share transaction for the fin year 2013-14 & 2014-15 is around 2 crore(speculation loss+short term loss), my total income is under taxable.

    now i want to file the return for the periods.

    Is there any problem for so much high transaction showing in return or any audit problem.

    Please guide me urgently.

  60. Kingsuk Roy says:

    sir, my father bought a plot of 3000 sq.ft. and built a two storied house (1100sq ft each story) on 1970 at Midnapur , West Bengal , India. In December 2011 he made a POA as owner with a developer to develop that property and made a registered agreement on july 2012 by which a G+4 building will be built and of 8 flats(1120 sq ft super built each) and 4 garages, my father(owner) will get 3 flats (two on same floor and one on top floor) and 2 garages. But before hand over of flats and garages my father passes away on 05.01.2015. I am the only heir of him. my question is …

    1) as only heir is their any capital gain tax charged on me on whole?
    2) is there any CGT on those same floored flats which i will reside?
    3} if i sell the third flat do I pay CGT?
    4) if so, can i be indexed from 1981-82?

    sir, if u pls advise, I will be ever grateful.
    Kingsuk.

  61. Capse says:

    I had purchased 2 residential flats from inheritance residential property. One was in new construction in own name and one co-owner in very old building without basic renovation.

    I have a balance amount of 10lacs in capital gain bond (3 years are not yet up). Can I show this amount of 10L as renovation and architecture costs, terrace waterproofing/full renovation of flat done in my IT returns next year? Will I get such exemption.
    appreciate your kind response.
    Best regards,

  62. R.Perumal says:

    Hi,

    We are three of friends together purchased a land three years back but the land register in my name only we have purchased 8,25,000 now we are planning to sell the land for13,50,000 in this case whether iam salaried employes in organasation tax deducted in my salary now i am in 20% Tax Slab wether i need to pay tax and how much it will come. Based on your input iam planning to discusss with my friends for sharing the Income tax.

    Thanks
    Regards
    perumal

  63. ranjith says:

    i jhave purchased a land in 2007 for Rs 120000 and constructed a house with various loans upto 2012 amounting Rs 1880000

    Now i am selling my house @ 6000000 what is my tax liabilty? wether i have to pay 20% tax on my liabilty of 2000000 and remaining 40 lac can invest in capital gain account

  64. rohit says:

    Is transfer of depriciable asset always short term?

  65. Amitabh Agarwal says:

    Sir,

    Kindly clarify,
    My wife sold flat in March 2013 and invested that long term capital gain amount only, in authorized nationalise bank in the Long term capital gain in F.D. on Sept 2013.
    1. When shall she purchase a new flat and what should be possession date of new flat ?
    2. She is also a nominal joint a/c. holder in one of my flat booked in January 2011 and agreement made in Sept. 2011 in my name ( she is a joint holder, but I did not paid any amount to builder from her a/c. till date )
    3) Possession of my flat will be received in March 2016 ( physical possession for furniture with architect certificate ) and completion certificate will get only after 9 months or so.

    Please advise, what shall I do.

    Amitabh Agarwal

  66. NILESH DARJI says:

    Dear Sir,

    Please tell me one thing that any SIP (MUTUAL FUND) INCOME IS TAXABLE
    If SIP is only for one year, should it calculated as STCG?

  67. Ashesh Banerjee says:

    I have two querries as regards to LTCG:

    1). After investing the gain amount in Capital Bonds for three years, can the amount be utilized for personal use after the term. Will then the tax be applicable.

    2). I have sold the property which was inherited by me and the amount of gain on it is Rs. 20 lacs. I want to construct a house for which i have scouted a land worth Rs.23 lacs. Can i invest this amount for purchasing the land and the remaining amount towards construction will be met from my own sources. Can the tax be saved.

    Regards.

    A.K.Banerjee

  68. Satish says:

    My Grand Father has a residential house bought in 1972 and has two sons,one daughter.

    We recently sold that property, where in the sale deed the 3 children of my grand father and 6 grand children signed. We the 6 grand children and daughther of my grand father didnt get money because we dont want.

    So the amount received due to this sale belongs only the two sons of my grand father with equal share.

    So how should they file tax on capital gains? We got confused that 9 persons signed but only two persons gained benefit and how to show and declare for Tax. Please help

  69. TG Narayanan says:

    Dear Sir/Madam,

    My wifes’s late Father’s property in Coimbatore was sold by the 5 legal heirs (Mohter, 2 Brothers and 1 Sister & my wife) at INR 75,50,000/- and my wife got a share of INR 14,00,000/- as Demand Draft from the buyer as agreed between the Buyer and all the Legal Heirs.

    The DD has been deposited in my wife’s bank account. The building was from 1990’s and we are not sure about the original cost.

    Please advise what would be the Capital gains Tax and how to avoid paying the same by investing the whole or part amount in Government approved schemes such as Rural Electrification etc. as we do not intend to buy any property for now.

    How many years we have to invest and what is the returns if any on such investments.
    Request advise.

    Thanks &regards,

    TG Narayanan

  70. mukund says:

    Sir kindly clarify on :
    Myself and my wife are the equal owners of flat purchased in 2008 . My wife has another House (land and building ) which she bought in 1988 in her individual capacity and now decided to sell . my query is:
    1. Whether my wife has to settle/ gift her 50% ownership on the flat in my name before selling the house to avail exemption from capital gain tax liability.
    2. By retaining her 50% ownership in the flat Whether she can buy another flat/ or can invest in capital gain bond to avail exemption
    3. Whether a person can have two houses while disposing one and can buy another HOUSE to get benefit.
    Thanks

  71. mukund says:

    sir kindly clarify to:
    myself and wife have equal share in a flat purchased in 2009. my wife has another house (land and building) purchased in 1980 in her individual capacity which she wanted to dispose now . my query is :
    1.whether she can use the sale entire consideration in buying another house /flat or investing in capital gain bond to avail exemption , while she has 50% share in another flat.
    2.alternatively is it necessary that she has to gift/settle 50% of her share owned in the flat in my name before selling the house to avail exemption. thansk

  72. Sathishbabu P says:

    I have a Capital gain of 2000000 by selling a land in 2011
    I have purchased a land for 2000000 (invested complete capital gain in another land the same year) in 2011.
    I have constructed a house in 2013 (invested my savings as capital gain amout is completely invested in the land).
    Sold the land and house in 2015.

    How will this be considered for Taxation

  73. C Roy says:

    In new ITR forms, which should one fill if there is salary, income from interest and MF investments? I don’t see provision for ltcg, stcg entries in ITR-1.

  74. mukul says:

    sir when consideration received from sale of agriculture land and utilized for purchase of another agriculture land in the name of legal representative. Which dedution will be apply and how to treat this situation?

  75. RAM NARAYANAN says:

    For claiming deduction under capital gain . In case of cost of improvement is it essential to produce valid document? .Is it possible to claim without valid proof .If so then how much one can claim ?

  76. Arun V bedekar says:

    I have a following query:

    In 1998, a lady acquired flat from developer against the tenancy rights, cost of which was zero. Her son inherited the said flat in 2008 on her death. He subsequently sold the same in 2014.

    The cost of flat, not only to the assessee who sold the flat but to the original owner is also Nil.

    What will be cost to the son? Is it right to do the valuation of the flat in 1998, the year when the lady acquired the flat against her tenancy rights and then index the cost arrived at on such valuation? Please note that cost of tenancy rights to the lady was nil.

  77. Srinath BG says:

    Dear Sirs,

    Kindly let me know whether there is capital gains tax on a sale of site which was purchased during 1990 and 1982.

    Some consultants say, I have to pay tax. some opined that there is no tax liability.

    I am a salaried person with 10% slab.

    Kindly advise.

  78. Nigam Goyal says:

    I have power of attorney of one house and i sold it. My question is in which hands capital gain is to be taxed, either in my hand or the person who is real owner of property.

  79. jagdish kotia says:

    a property purchase in 1973 through grand father under corporation area ,this property sold before 31.3.2015 but some other reason deal cancelled after take advance money about 70 lacs.in that period we purchased a one living house about 25 lacs from that money , after 31.3.2015 dated on 15.5.2015 above said property resold and get balance money.now what i do , how much tax will be deposit as advance tax or assessment tax.
    Note:- The value of sale divided in two part because we two brothers than all will be divided in two part.

    pl give right advice & calculation which that we submitted the correct return.

  80. Jaswant Singh Batra says:

    I have sold Equity shares of 9 companies on 27-02-2015 through ” Kotak Securities ” on line with the help of Kotak Securities Staff, which had been in “D’mat A/c Form”. since March 2007 with NSDL Approved Depository, viz PMC Bank, Mumbai.
    ” Kotak Securities ” credited ₹ 67611/- into my Saving Bank A/c on 03/03/2015 as .”NET SALE”
    proceeds of my 9 Equity Scripts.
    The shares of the companies were purchased during the year 1988 to 1996. The records/documentary evidence is Not available with me. I am 82 years of age. But, by taking the present ” Face Value” of the 9 Scripts, I seem to hEave made a Long Term Capital Gains of about ₹25000/- What is my Long Term Capital Gains Liability. Response is requested so that I do the needful before submitting my I.T. Return for AY 2015-16

  81. Partha Chakraborty says:

    I have shares of valuation of 10 lacs. I wish to hold these stocks for another 5 years. Is it compulsory to declare these stocks in returns though no ltcg or stcg faced during the financial year? Please reply.

  82. harsha says:

    what amount need to be transferred to profit and loss acount in case of sale of asset???? Explain briefly

  83. partho says:

    In one word informative. Only deficiency lies in reply. All problems asked by different persons should be replied by you in the website. Please display the reply of public response/problems asked for.

  84. Shubhalaxmi says:

    can I invest capital gain in two separate residential houses..

  85. joseph francis martyres says:

    Just seeking clarity if Short Term Loss can be adjusted during the year

    I) against Short Term Gain

    ii) against Long Term Gain.

  86. Krishnaraj says:

    I sold residential land in Bangalore North for Rs.1,15,00,000 [ One crore and FIFTEEN lAKHS] IN January 2015. This land was bought for Rs.44,00,000/- [Forty Four Lakhs] in December 2011. I want to reinvest this entire money in buying a flat/apartment. How do I get exemption from Capital Gains tax and how much time do I have to make this reinvestment ?Kindly Advise.
    Thanks, Krishnaraj.

  87. Satyanarayan says:

    My wife purchased two houses of configuration of 1 BHK in 2005 for a certain sum, each adjacent and having a common kitchen and made it into one unit in the same year.At the time of sale, since it was difficult to get customers, it was once again sub-divided to two units by a brick wall. In 2014 she sold one of the house for a certain sum….immediately after the sale was done she invested the proceeds in a 2 BHK & the other one was sold in 2015. The purchase consideration for the 2 BHK now booked is double the sum of the sale proceeds of both units. Will the entire LTCG be granted and exempted as the entire proceeds will be invested in the new house?

  88. Basant says:

    Pl. advice my query.I sold a plot on 9-4-15The buyer gave me a cheque dated 31-3-2015as his loan was sanctioned on 31-3-2015.Am I to file this transaction in 2015-16. OR next year 2016-17……….Further ,the benefit of indexation is given in the case where cost of land was paid by me in instalments from year 2007 to 2013. Thanking you

  89. Ashok Sawlani says:

    I had purchased aflat residential for my own use for 15lacs and sold it now for 48 lacs and will buy a new flat for 40 lacs is there any tax liability
    I had purchased the 15 lacs flat in 2019
    Thanks

  90. BRIJPAL CHUHAN says:

    MU brother purchased a plot in siela quai ( dehradun ) VILLAGE PODOWALA OUTSIDE MUNICIPAL LIMITS IN 2010. NOW WE HAVE SOLD THE PLOT IN 2015. MY QUESTION IS WHETHER CAPLTAI GAIN WILL BE APPLICABLE OR NOT. DO I HAVE TO PAY ANY TAX ON THIS TRANSATION

  91. Jeet says:

    Hi,

    Should we invest the amount in capital gains bonds in the same financial year for us to claim tax benefits. I sold some MNC RSU in Feb’15 and want to invest it in April’15.

  92. shekhar says:

    In your last example, Mr. Raja sold his bungalow for Rs. 80,00,000. The value adopted by the Stamp Valuation Authority of the bungalow for the purpose of payment of stamp duty is Rs. 84,00,000. In this situation, while computing taxable capital gain arising on transfer of bungalow, Rs. 84,00,000 will be taken as full value of consideration (i.e., sale value of the bungalow). Thus, actual selling price of Rs. 80,00,000 (being less than stamp duty value) will not be taken into account while computing taxable capital gain, if the person who bought the bungalow for Rs. 80,00,000 sell it out for the same rate after 2 years. What Tax Liability will he be liable to pay in case he has not paid any tax till the present day?

  93. Amirali boghani says:

    I have purchased house 6 years back for rs. 5500000/- now i am selling it for 12000000/- and making capital gain of Rs. 6500000/-.

    i am purchasing another house for which the cost is 7500000/- I am investing only capital gain and not my principal amount will there be any capital gain on balance amount. please clarity

    thanks

  94. Srinivas says:

    Informative article.

    Please let me know the time when the CG tax need to be deposited after sale of house and realization of proceeds.
    To further clarify, when I sell house in Jan and get the proceeds in the same month, when should I pay the CG tax.

    Thanks in advance.

  95. Ramaiah says:

    Very good articales for us to know and get aware. I like to know weather house property can be sold and land for agriculture can be punched . How the capital from hose gained on long can they exempted from capital gains

  96. Rakesh Gurbani says:

    hi,

    I have one house on my name at Lajpat Nagar, new delhi ; one commercial property and one residential flat in Gurgaon, Haryana . Both are residential houses.

    We want to sell our residential Gurgaon house at Rs. 1 crore . Our purchase value of Gurgaon flat is Rs. 8 .2 lacs for which we got possession in the year 2000.

    After selling our Gurgaon house, We will be investing Rs. 2 crore to purchase a new house in Noida, U.P. within next 1 year .

    Do we need to pay long term capital gain tax on Rs. 1 crore that we will get by selling our Gurgaon house.
    Or will that be exempted since, we will be re-investing in another residential house.

    Also, are capital gain taxes applicable even if we own more than one house.

    Under what section will we get long term capital gain tax benefit ?

    do we need to open capital tax gain account as we will be investing in next 18 months. However, we have return files in march 2015 but our investment horizon will go upto March 2016.

    Pls help urgently.

    Thank you!
    Rakesh

  97. krunal says:

    incase of reverse mortgage scheme if any person aquire any capital asset which was put as mortgage then all cost including interest paid to acquire such assets is consider as cost of acquisition to acquirer not in other case bcz in case of house property you has already claim the interest cost u/s 24b under income from house property so you can not claim interest twice so never allow

  98. krunal says:

    incase of reverse mortgage scheme if any person aquire any capital asset which was put as mortgage then all cost including interest paid to acquire such assets is consider as cost of acquisition to acquirer not in other case bcz in case of house property you has already claim the interest cost u/s 24b under income from house property so you can not claim interest twice

  99. sudarshana says:

    Very good article and nicely presented for anybody to understand. What is missing is:
    1. The Interest part of the EMIs paid can be added to the cost before calculating the capital gain wrt selling price.
    2. Cost of aquisition can also be added to the cost.

Leave a Reply

Your email address will not be published. Required fields are marked *