Saving LTCG tax on sale of flat acquired from sale of IInd property

Sir, I have a society flat in my wife’s name. I booked another builder flat in our joint names in Dec. 2009 for Rs. 19 lac. Provisional physical possession of the flat was given on 25.7.12 and registry was done on 13.3.2014. I had purchased a plot in Dec. 2000 for Rs.3 lac which I sold in Dec.2011 for Rs.16.50 lac. I repaid the H/L and balance cost of builder flat from the sale proceeds of the plot. Now I want to sell the builder flat and purchase another builder flat. If it is done, will I have to pay LTCG tax on sale proceeds of plot. If the answer is yes, then when I can sell the builder flat to save the LTCG tax. Ramesh Nautiyal

asked Mar 15 '14 at 21:32 by ramesh chander 11


  1. Have you already taken tax benefit u/s 54F (for tax on capital gains earned from selling plot) in ITR of FY 2011-12 against purchase of builder flat? If yes, it would be reversed in case builder flat is sold before three years (25-07-2015)
  2. In order to save tax fully u/s 54F, your share cost of new flat should be more than sale proceeds of plot. But as new flat is in joint names, assuming equal share of 9.5 lacs each, which is less than 16.5 lacs, so tax would be payable on gains from plot sale proportionally.

answered Mar 18 '14 at 23:49 by Pankaj Batra 5.2k320

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Asked: Mar 15 '14 at 21:32

Seen: 1,389 times

Last updated: Mar 18 '14 at 23:49