Real Estate Forum on Capital Gains On Selling An Old Flat

Latest Answer: Hi Sudhish, To make you clear, i am giving you an example. Suppose an individual has a long-term asset (other than residential property) & he sells it on 1st April, 2013 for Rs. 1500000. Suppose, the indexed cost of the asset is Rs. 800000 then Long Term Capital Gain will be = 1500000 – 800000 = Rs. 700000 In order to get full exemption u/s 54 F he will have to invest the full sale consideration of Rs 1500000 in construction of a house property before 31st March, 2016 or purchase a new residential house property before 31st March, 2015. If he has already purchased a residential house property on or after 1st April , 2012 then the amount invested can be adjusted with the purchase price of this property.

Latest Answer: There are two types of accounts in the Capital Gain Account Scheme provision. The first account is just like a savings deposit account. You can withdraw from the account from time to time subject to other conditions of the scheme. This account is suitable for people who are planning to construct a house over a period of time. The amount withdrawn should be used for the purpose of purchase or construction of a house. It should be used for the purpose within 60 days of the withdrawal. Any unused amount should be deposited back in the same account.

Latest Answer: Yes, Capital gain tax is always tax on profit you made by selling your property and you are liable for Capital gain tax, if you sell a residential property (after 3 years from date of purchase) and reinvest the proceeds into another residential property (within 2 years from date of sale), capital gains tax will be exempted. Thank you

Latest Answer: The tax for capital gains is nil if you buy the new apartment within two years of selling the old flat. You do not have to pay any capital gains tax within two years and if all of the capital gained from selling of old flat is used up in the new flat.