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Long term capital gain on sale of second flat

K P BHANUSHALI (PROPRIETOR) (510 Points)

05 December 2018

Hello Friends,

I have one query regarding Sale of Second House owned singly by Senior Citizen.

Instalments for Payment towards Second Flat was started from 24.04.2010 & Completed on 3.11.2018. Total Purchase Cost is 1293199/- & Indexation of this total cost comes to 1866616/-. There by LTCG comes to 683384/-. Possession of the Flat was given by builder on 8.6.2014 & this flat was subsequently given on Rent.

Sale price of this flat is 2550000/-.

What will be position as far as Taxability of this LTCG is concerned.

Whether he can buy another Flat to avoid LTCG Tax and if he can, upto what amount he should invest in new flat ?

T & R

K P Bhanushali

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6 Replies

Sayan Gupta (Accounts Professional) (176 Points)
Replied 05 December 2018

If he utilises the proceeds equivalent to the LTCG amount towards purchasing another new complete flat within India within 1 year prior to the sale date or within 2 years after the sale date, then he can save the entire tax. Points to be noted that in case of under construction flat the time period given is 3 years means it has to be complete within 3 years after the sale date.