I own a flat and a plot. The flat was purchased 4 years back from my savings + bank loan and the plot was purchased about 20 years back. Now, i plan to sell the plot and invest the entire proceeds in purchase of a flat. This i plan to do in this financial year itself. Am i to open a new bank account for this transaction or can i route it thro my normal SB account. How about Income Tax liability if any. Also, is it required to be shown in my normal IT returns.
1 Answers
In case possession for new flat is not taken before 31st July 2013 (last date of return filing for FY 2012-13 in which sale occurs), you would need to deposit sale consideration amount into capital gains scheme amount, else it won't be needed.
In case cost of new flat is more than sale consideration of plot, there won't be any income tax payable.
Gains and exemptions needs to be shown in income tax returns.
Read more details on these pages: Income Tax on Property Sale and long term capital gain tax on sale of plot
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