Calculate capital gains

Q: Hello.. I have sold an apartment for Rs 50 Lakh. Please help me in calculating capital gains.

Pravallika, Hyderabad

6th May 2013

Other in Hyderabad

long term capital gain

capital gains

short term capital gain

property buying and selling

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Replies (5)

Hi Bharat..it is a short term capital gain as you have not completed 3 yrs from the day you took possession. It is fully taxable if you sell that flat within 3 yrs from the possession date.

Dhananjay, Hyderabad

8th May 2013

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Hello everbody..i have a question related to long-term capital gains on sale of property and how to minimize its impact. I bought a flat in Feb 2007 for Rs 42 lakh. The payment was made in many installments from the Feb 2007 to may 2012. The construction of my apartment was completed in April 2012 and i got posession letter in April 2012. The current market value of my flat is Rs 85 lakh. I am planning to sell my flat..so can i claim long-term capital gain as sale agreement for the purchase of flat from the builder executed in February 2007 though it was not registered. What will be indexed cost of acquisition? Will it be weighted average for the period over which investment has been made? How can I minimize payment of capital gains?

Bharath Konda, Hyderabad

8th May 2013

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Hi..Capital gain is always imposed on the profit incurred. Under Section 54, if you want seek benefit of exemption when you are selling your house property,then you will have to invest your capital gain in constrcution or purchase of another house within a specific period of time. If there is a long term capital gain from sale of capital assest (except residential house), then you can avail the exemption under section 54 F by investing the entire sale consideration (after deducting expenses incurred for such sale like brokerage etc).

Dhananjay, Hyderabad

7th May 2013

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