Gifted Property & LTCG

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Suresh87 asked 8 years ago

Hello Sir, My mother got a land as a gift from her mother in 1990. My mother gifted that land to me in 2016. In 2017, i sold that land. My capital gain was 25 lakhs. According to your article on capital gains, i came to know that it should be treated as LTCG. Now I want to purchase a commercial shop for 35 lakhs. My questions are- 1) Is it possible to claim that 25 lakhs capital gain for exemption?(I do not have any property till now) 2) if it is not possible for exemption,how much percentage of tax I have to pay on gains? Thank you.

Suresh87 replied 8 years ago

I’m buying a property having 2 floors.On ground floor there is a shop and on second floor there is a residential house.In this case,we can treat it as a commercial shop or a residential house?

3 Answers

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Sreekanth Staff answered 8 years ago

Hi, 1 - Kindly note that Capital Gain Tax cannot be saved if the sale proceeds are invested in a commercial property / agricultural land . 2 - Long Term Capital Gains are taxed at 20%. Kindly read : https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/ https://www.relakhs.com/sale-gifted-property-capital-gains/

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Suresh87 answered 8 years ago

I have a LTCG of 25 lakhs.I’m buying a property having 2 floors.On ground floor there is a shop and on second floor there is a residential house.In this case,we can treat it as a commercial shop or a residential house?can i get exemption or not?

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Sreekanth Staff answered 8 years ago

Hi, May I know if the property has been assessed as a commercial property or a residential one as per the local civic body (you can check this in property tax receipts).