STCG tax on flat sale and purchase of another Flat jointly owned with my wife, tax liability and any savings on tax possibility?

Dear Sir, I have purchased Flat in oct 2009 and got its possession Jan 2012 in 30 Lakhs(with registration), I have sold this Flat in 43 lakhs in Apr 2013 with final deed executed on 16 Apr 2013 but registered agreement of sale was done in Jan 2013, All payments were transfered in my account btn Nov 2012 till 27 Feb 2013. Only the possession and keys were handed over to the purchaser on 16 Apr 2013 with the execution of registered final deed. I and my wife were the owner of Flat & this was the only property on our name.

Since I was not aware of STCG Tax, I purchased another Flat in 44 Lakhs using all our funds receieved from my previous sale. Now we own this Flat and reside in it. I have submitted IT returns as showing only income of my salary. I thought I will mention in year 2023-14 IT return because final deed is executed in Apr 2013. Also I have not consulted any advisor and considered that I can use my funds for another Flat purchase. Please advise what should I do, I M not in position to pay such a huge tax as I have renovated my house. We have only this property on our name.

asked Aug 16 '13 at 22:40 by sksr 111

As property has been sold before three years after possession, gains from it would be short term capital gains.

There is no provision available to save tax on such gains.

Whole gains of 13 lacs would be added to taxable income in same ratio of ownership among all owners. This would be taxed as per applicable tax slab rates.

answered Aug 18 '13 at 12:18 by Pankaj Batra 5.2k320


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Asked: Aug 16 '13 at 22:40

Seen: 2,748 times

Last updated: Aug 18 '13 at 12:18