Income tax on property(apartment) sale

POSTED BY Ravi ON June 27, 2012 3:28 pm ONE COMMENT

i brought an apartment for 46 lakhs 60 thousand in 2008.
Got it registered on nov end 2008.
Selling it for 54 lakhs in june july 2012 excluding registration
stamp duty charges that will be paid by buyer.
would there be any income tax / property tax on capital gain
As per an other query and answer i calculated cost as 785/582 * 4660000 = ~ 6285000
http://localhost/jagoforum2/calculate-income-tax-on-a-sale-of-property/3298/
( http://www.caclubindia.com/mobile/forum/details.asp?mod_id=175456 )
Since it is higher than 54 lakhs and difference is negative would there be no property tax.
property is in jp nagar 6th phase bangalore

i have claimed income tax benefit on interest and prinicpal
after purchase. I am paying 45953 emi from jan 2009 till date
principal amount cleared = 3 lakhs till date on 41.2 lakhs loan

i have not let out apartment for lease or rent till date and it was self occupied

thanks.

One reply on this article “Income tax on property(apartment) sale”

  1. Dear ravi, the apartment in question is a capital asset. So the gains or losses arising out of sell of this apartment ‘ll be considered as capital gains or capital loss as the case may be.

    Your basic calculation for the capital gain is correct & accordingly it’s a long term capital loss for you as you have hold the property for more than 3Y.

    From your query, it’s not clear that 46L Rs. price was inclusive of registration & stamp duty charges or not? Please confirm the same.

    Regarding the home loan, as you have availed tax benefit on both, interest as well as principal repayment, the good news is on interest part no tax implication ‘ll be there but on principal part as your holding period is less than 5Y, you have to pay back the saved tax amount against principal amount.

    Thanks

    Ashal

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