Hi, this is Vimal Sharma, I am 55 years of age. I have sold a residential plot on 15/01/18 for Rs. 48 Lakhs. The approx. LTCG is 30 Lakhs. I have a flat which i want to sell. Likely LTCL at current prices is going to be 33 Lakhs. My querries are as:
1. Can i offset the LTCG with LTCL which will come if i sell the flat.
2. If this is possible then what is the time frame in which i have to sell this flat.
3. I don't want to buy any other property."
1 Answers
Dear Vimal ji,
1 - Yes, you can off-set LTCG with LTCL.
2 - I believe that the both the transactions have to be executed in the same Financial Year.
Suggest you to kindly consult a CA in this regard.
Related articles :
https://www.relakhs.com/set-off-carry-forward-capital-losses/
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
Your reply :
Thanks Sreekanth ji. I discussed with a CA in my company, he is also of the opinion that LTCG can be offset by LTCL if it is in the same financial year. As per him there is no provision to carry forward LTCG. Had i sold the loss making property first, it would have been possible to carry forward LTCL, but since i sold LTCG making property first, LTCG can be offset against LTCL in same financial year only. As per him, the complete deal for selling LTCL making property has to be concluded before 31/03/18. If it is not possible, then it is better to invest the money in capital gains bonds before 15/07/18.
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