LTCG queries for house purchased in 2004 ?

POSTED BY majush philip ON February 23, 2015 5:12 pm ONE COMMENT

I have purchased a flat in Feb 2004 for 105000 .
I have spend close to one lakh in repair works ( 50000 in 2004 , 50000 in 2009) – I do not have bills
I sold the flat in feb 2015 for 4800000.
I also purchased another flat in oct 2013.

Query 1. Can I pay the loan for second house I purchased in 2013 with the proceeds and claim ltcg excemption

Query2 : what is the best way to save LTCG , I am ready to purchase another flat . is it possible?

One reply on this article “LTCG queries for house purchased in 2004 ?”

  1. 1. One relevant condition of investment is

    The investor/seller should use the funds from capital gain to purchase a new residential house within 1 year before or 2 years after the transfer date (sale/transfer of the original property).

    As your house purchase wasmore than 1 year, this condition will not apply and your pre payment of loan will not be saving CG for you.

    2. There are 2 ways of saving CG.

    a. Buy a new house or flat. If done, the house should be held for at least 3 years else CG exemption will have to be surrendered. If the transaction is not done immediately, the money is to be parked in CG account in a recognised bank.

    b. Investing sale proceeds in Bond(NHAI etc). These will be locked in for 3 years. Interest on the investment is taxable in the hands of the investor.

    One can choose the option of one’ choice.

    Trust I answered your question.

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