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S B JAJU (Partner)     12 June 2013

Capital gain on sale of flat

I had abought a flat in mumbai for Rs. 30000 (thirty Thousand) in the year 1979 inMumbai. I have now sold this flat for Rs 24 Lacs in 2013. What will be the tax implecations on this'

I wish to buy a flat along with my son in Pune in about 3 years. Will this action will give me some relief in future.

How should I plan for taxation now.

Thanks for advice



 5 Replies

Advocate Ravinder (Advocate/Attorney)     14 June 2013

On whose name the property was purchased in 1979.

Amritesh Mishra (Advocate)     14 June 2013

You will be charged @ 20% on long term capital gain  +EC+SHEC.


However capital gain tax can be exempt in following cases

1) If residential property is purchased within 2 years after the date of transferof residential house property.

2)If new residential property is property is constructed within 3 years from the date of transfer.

Extent of Exemption-

Investment in new asset or capital gain whichever is lower will be exempt.



Shri AMRITESH ji rightly advised. Pl intimate;

1. In which month of 2013 U sold the flat and in which month of 1979 U had purchased it.

2.Had U purchased it in your name ?

S B JAJU (Partner)     20 June 2013

I had purchased the flat in my name in Feb 1979.

I am selling this property in the month of July 2013.

Since the new property will be bought in about two years along with my son, till that time how should I invest this amount so that it does not attract Capital Gains Tax,

The new property will certainly be of bigger value than current sale

Vineet (Director)     24 June 2013

1. Capital Gains


You will be charged long teram capital gains tax @20.66% on capital gains computed by reducing indexed cost of acquisition from sale consideration. The indexed cost in your case will be determined by multiplying the value of your house as on 1-4-1981 by 9.39. You can get it valued as on 1-4-1981 by any registered valuer or go ahead by assuming cost of 30000/- as on 1-4-1981 if there is no significant appreciation at that time. You will also get benefit of any cost including registration, stamp duty, brokerage etc paid for transfer of flat both at time of purchase as well as sale.


2. Tax Saving

You have to purchase a flat within two years of sale of current flat for a consideration equal to the Long Term Capital Gain computed above. If flat is not booked before due date for filing of return next year i.e. 31 July 2014, the capital gain amount has to be deposited in Capital Gains Account maintained with  a scheduled bank and can be withdrawn for the purpose of purchase of flat later but within two year.

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