I have purchase a house for 148 lakhs jointly with wife in Nov2019 I invested my retirement benefits and saving.
After 10 month in Sep 2020 I have sold my flat for 48.75 lakhs. Can I use this capital gain for claiming the tax saving as it was BUY first with out any outstanding loan, and SELL later with in 1 year.
Even If this is acceptable can I build a new house in my site for 50 Lakhs. some one said that If I construct a new house with in in three years , capital gain saving will be canceled. Other said is it applicable only to 54F case not for section 84.
Sreekanth ji >>> Which is good option for buying a Capital Gains Tax Saving Bond. NHAI or REC ? PL guide
If Land or house property is held for 24 months or less (w.e.f. FY 2017-18) then that Asset is treated as Short Term Capital Asset. You as an investor will make either Short Term Capital Gain (STCG) or Short Term Capital Loss (STCL) on that investment.
What are the applicable Capital Gains Tax Rates on Sale of Property AY 2020-21?
- Short Term Capital Gains are included in your taxable income and taxed at applicable income tax slab rates.
- Long Term Capital Gains are taxed at 20%.
Capital gains tax on Short term gains is unavoidable and no exemptions are available to minimize your tax liability. However, you can claim deductions to lower the tax liability on long-term gains.
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