Tax on property resale

Dear Sir

I request your valuable suggestions for the below query.

I have booked a flat in Dec 2009 for which the registration has been done in Jan'2010. However the Apartment is still under construction, nearly finished. Will get the possession by end of July'12.

I have booked one more flat in Oct 2010 for which the registration has been done in April'2012. The Flat is ready for possession, will handover by end of this month.

Both the flats are under Joint ie,. myself and my wife are the owners of the flats.

Iam planning to sell the flat which i booked in 2010. Will there be any Tax incurred on short term capital gains, if yes then how to avoid this?

Can i re invest in a new residential property within 1 year after the sale to avoid the tax?

To be precise, how to avoid paying tax if the property is sold within 3 years from the date of registration.

Thank You

Prakash K

asked May 15 '12 at 00:44 by Sagi Nair 111

There is no way to save income tax on short term capital gains.

If property is sold before end of three years from transfer date, it would be short term gain. Whole gain would be added to your taxable income and taxed as per your slab rates.

answered May 28 '12 at 21:19 by Pankaj Batra 5.2k320

Thank You Sir !
(May 28 '12 at 22:35) Sagi Nair

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Asked: May 15 '12 at 00:44

Seen: 2,043 times

Last updated: May 28 '12 at 22:35