I had bought a plot in 2015 Nov for 23 Lacs. I am selling a house now whose sale deed will be executed in in Jan 2018 from which i am getting a Long Term capital Gain of Rs 60 Lacs.
Can I offset this LTCG of 60 lacs totally by constructing a house for 40 lacs considering that I have incurred rs 23 lacs for the plot.
2 Answers
Hi,
If you have held the property for 24+ months, on sale the gains are treated as Long term capital gains.
You can use the entire Long Term Capital Gain proceeds on sale of a residential house to buy another house property (residential property) to save Capital Gains tax.
- If you plan to use the gain to build a house, it has to be done within three years of the sale of the property. Do note that ‘cost of land’ can be included in the construction cost.
Hi, I have bought an under construction property. I have been paying to the builder since lasst 7 years in installments. However, now I would be selling this property without registration and of course without occupation to someone else. The property will be ready in other 6 months.
My question is:
How do I calculate the LTCG on this? As I said I have been paying to the builder since 2011-12 and the last disbursement was in 2017-18. The new buyer is required to my last 2 installments.
So I actually have both LTCG for the disbursements made before last 3 years and few short term gain for the disbursements made after the last 3 years. So should I first calculate the LTCG with indexation and then the short term capital gain. In both the cases I will have to calculate for each disbursement to the builder as the timeline is spread over.
Can you please help me verify if this is the right this to do? Appreciate it so much. Thank you,
Pradeep
My question is:
How do I calculate the LTCG on this? As I said I have been paying to the builder since 2011-12 and the last disbursement was in 2017-18. The new buyer is required to my last 2 installments.
So I actually have both LTCG for the disbursements made before last 3 years and few short term gain for the disbursements made after the last 3 years. So should I first calculate the LTCG with indexation and then the short term capital gain. In both the cases I will have to calculate for each disbursement to the builder as the timeline is spread over.
Can you please help me verify if this is the right this to do? Appreciate it so much. Thank you,
Pradeep
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