Capital gain

I bought house & took possession (no 1)in Mumbai in June 2006. I bought another house ( no 2)in Mumbai in 2011 against a home loan -possession taken. Now due to work I have been transferred to Delhi. I plan to sell house no 1 and buy a house in Delhi. With the proceeds from the sale in Mumbai (house no 1) i will be able to buy another home (readybposession) in Delhi and also partially pay my home loan for ( house no 2).

Assuming that the proceeds from house 1 are enough to pay for the new house in Delhi and repaying the loan - will I be required to pay capital gain tax. Please advise.

Mukta

asked Dec 31 '11 at 16:02 by nitkin 1111


If your new house in Delhi costs more than long term capital gains earned from selling house no 1 in Mumbai, then there won't be any income tax payable u/s 54.

Possession of house in Delhi must be taken before end of two years from sale of Mumbai house. Also, if possession is not taken before 31st July, 2012 (last date of return filing), then long term gains has to be deposited into capital gain scheme account.

answered Jan 02 '12 at 17:08 by pankaj 5.2k320

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Asked: Dec 31 '11 at 16:02

Seen: 1,148 times

Last updated: Jan 02 '12 at 17:08