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Partha Chattopadhyay   08 June 2017

Capital gains

If a flat purchased in 2001 at Rs 8.5 lakh is sold in 2017 at Rs 35 lakh, how much will be the capital gains tax to be paid for AY 2018-19? Moreover, if around 2lakh out of this gain is spent to pay the outstanding house building loan, then what will be the tax liability?


 8 Replies

Ms.Usha Kapoor (CEO)     09 June 2017

Please ppost months of purchase and sale in order to calculate capital gaind/cost of acquisition.post  thyem immediately. I'd be going out at 3 pm on an urgent work.

Partha Chattopadhyay   09 June 2017

Thanks for your response Ms Kapoor. The details are as follows. Date of purchase Jun 2001. Date of sale October 2017. Date of repayment of outstanding HBA January 2018.

Partha Chattopadhyay   09 June 2017

Thanks for your response Ms Kapoor. The details are as follows. Date of purchase Jun 2001. Date of sale October 2017. Date of repayment of outstanding HBA January 2018.

GANDHI MOHAN BHARATI (Pensioner)     09 June 2017

The Govt notified inflation Rate index recently with Base year 2001-2002 as 100. For 2017-18 it is 272.

Ttarget='_blank' rel='nofollow' hrefore, CG = 35,00,000 - (8,50,000/-*272/100) = 11,88,000/-

CG Tax onit is 20.00% i.e 2,37,600/-

By investing 11.88 Lakhs within 6 months of sale in Bond of NHAI or REc Bonds for Capital Gains you do not have to pay any tax.

The lock in period is 3 years and interest annually is 6.00%

Interest received is added to your income and is taxable according to the slab

Ms.Usha Kapoor (CEO)     09 June 2017

Just now I returned from visit to a Doctor. Meanwhile Mr.Bharti answered on the samwe lines which i WANTED TO ADVICE.

Partha Chattopadhyay   10 June 2017

Thanks Mr. Bharati for the calculation of CG.But out of Rs 12 lakh (approx) CG, if Rs 2L is paid to repay the outstanding HBA, then is it that tax @20% of Rs 10L is to be paid for CG Tax? Thanks to Ms Kapoor too. Hope you are all right.

GANDHI MOHAN BHARATI (Pensioner)     11 June 2017

I do not think the tax authorities will agree to a loan repayment as non cost. My feeling is that the total cost of acqusition is 8.50 lakhs whetrher it comprises oif loan or not.

Another ground is you would have been availing tax benfits of HBA in ITRs so far.

Partha Chattopadhyay   13 June 2017

Thanks Mr Bharati for your considered views.

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