Tax saving against capital gain

POSTED BY Kumar ON January 26, 2013 11:27 am ONE COMMENT

Hi,

    I have booked a under construction flat in Jan 2011, and sale agreement with builder was signed in May 2011 for 21 lakhs excluding service tax, vat and registration. I have taken home loan of around 17 lakhs. Now, I m planning to sell this flat and purchase in another location. My flat is still under construction and may complete by April 2013. Now if I sell this for 25 lakhs before registration then can I get tax exemption, if I purchase/book another? Otherwise how much tax to be paid and what are the options to save tax.

 

Kumar

One reply on this article “Tax saving against capital gain”

  1. Dear kumar, how much amount you paid towards, VAt, Service Tax, Stamp duty & Registration charges? Please add these charges into your basic cost of flat (2100000 Rs.).

    The diference from 25L Rs. (the sell price) ‘ll be your short term capital gain. no you can not claim any tax benefit on home loan interest as possession is not with you. You can not claim STCG adjustment either against purchasing another house property for the fact that your holding period is less than 3Y & thus you do not qualify for LTCG.

    Thanks

    Ashal

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