Capital gains tax implications after selling apartment in India
Posted: Thu Nov 01, 2012 9:27 am
1) Tax would be computed at 20% on the taxable capital gain. (Capital gain means Sale value less indexed cost of purchase). If not reinvested in other residential house within the time specified.
2) The objective of providing income tax exemption is to reinvest. So in this case no reinvestment is happenening and hence no capital gain exemption. One cannot claim the exemption for repaying the home loan of one property from sale proceeds of another property
3) the position could have been different, if you had sold this 1BR home before April 2012 or taken possession of 2nd house between October 2011 & Dec 2011. This may sound greek and latin on the face of it.. :O But lot of understanding to be built into the time limes. :)
"The income tax do provide that one could purchase the new asset one year prior to sale of the asset"
Lot of technicallities involved in the above provision and hence one should be careful :|
Regards
Sathya
2) The objective of providing income tax exemption is to reinvest. So in this case no reinvestment is happenening and hence no capital gain exemption. One cannot claim the exemption for repaying the home loan of one property from sale proceeds of another property
3) the position could have been different, if you had sold this 1BR home before April 2012 or taken possession of 2nd house between October 2011 & Dec 2011. This may sound greek and latin on the face of it.. :O But lot of understanding to be built into the time limes. :)
"The income tax do provide that one could purchase the new asset one year prior to sale of the asset"
Lot of technicallities involved in the above provision and hence one should be careful :|
Regards
Sathya