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Querist : Anonymous (Querist) 24 September 2011 This query is : Resolved
I bought one property in Nasik in 2005 and sold the same i June 2011 with a profit of 15 lacs. In the meanwhile in July 2010 i had booked an under construction flat in Pune by paying 3.51 lacs. The total cost of the house is 24lacs out of which i have taken a loan of 20 lacs from HDFC. My query is:-The 15 lacs profit which i got from sale of Nasik house,as i have already purchased another house in Pune (loan of 20 lacs),can i reinvest this amount is any other thing other than property without paying capital gain tax?

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prabhakar singh (Expert) 24 September 2011
You can escape from capital gain tax only when you have no residential house at all and you invest all sale proceeds solely for this purpose with in stipulated period,and loan amount shall not be considered as reinvestment .

Raj Kumar Makkad (Expert) 24 September 2011
No ax is payabl in the given facts as you have already purchased a house within a range of 2 years prior or afer registration of sale deed.

Vineet (Expert) 26 September 2011
What was the nature of property sold. If residential property, then in given facts, no capital gains tax payable as you have already purchased property worth more than capital gain within one year prior to sale. (dates are important)

By the way your long term capital gain will not be Rs 15 Lakhs; it has to be computed after indexing the cost price.

soumitra basu (Expert) 04 October 2011
Since new property of 24 Lacs has purchased after taking of loan of Rs. 20.00 Lacs, your contribution is only 4.00 Lacs.
Therefore, in my view you have to pay capital tax on 11.oo Lacs.

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