To avoid long term capital gains tax

pankaj, i have 2 residential properties. i live in one and rent the other out. I want to sell the rented one which was bought in Dec 2005 (posession given in Feb 2008) for an amount say X. To avoid LTCG I intend to buy a new flat for amount X which I want to sell within 6 months for amount Y. Will LTCG that is applicable for me be 20% of Y minus X ?.

asked Mar 02 '11 at 03:25 by ad18371 111

If you sell a flat before 3 years after buying, short term capital gains will apply and whole gain will be added to your taxable income and taxed as per your income tax slab rate.

Income tax will apply on Y-X and it will be maximum 30%, on case you fall in upper bracket.

answered Mar 02 '11 at 08:14 by Pankaj Batra 5.2k320


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Asked: Mar 02 '11 at 03:25

Seen: 1,630 times

Last updated: Mar 02 '11 at 08:15