Capital Gains Tax on Sale of Flat

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  1. Sriram S

    Sriram S New Member


    I am Sriram Here.

    I sold my flat in Bangalore for a total sum consideration of INR 29 Lakhs. I had to pay back a principal of INR 6.5 Lakhs to the bank to clear the loan. The transaction was completed in April this year.

    I am proposing the remaining amount in a flat which I propose to buy in the next few months.

    Do I have to pay any capital gains tax. If so how much. What is the Percentage and should I need to pay within this FY.

    Request your help in this regard.

    Thanks & Regards,
  2. Parul_Gupta

    Parul_Gupta Active Member

    If the old property that has been sold by you is a Residential Flat and has been held by you for more than 3 years - it would be Long Term Capital Gain and tax would be levied on the Capital Gains @ 20%.

    However, if the new property that you intent to purchase is also a Residential property, the capital gains would be exempted from Tax
    Sriram S likes this.
  3. Parul_Gupta

    Parul_Gupta Active Member

    And if the Residential Flat was held by you for less than 3 years, the gains arising on sale would be short term capital gains and tax would be levied as per the Income Tax Slab Rates
    Sriram S likes this.
  4. Sriram S

    Sriram S New Member

    Dear Akanksha,
    Thanks very much for your prompt reply. I would also like to know if I have a minimum of 2 years from the date of sale of the flat. The flat I had sold was 8 years old. Currently I have kept the money in my savings bank account. Are there any issues, if I keep it for a period of 6 months in SB A/c. Kindly advice.

    Thanks very much for your help. Appreciate your response.

    Best Regards,
  5. Parul_Gupta

    Parul_Gupta Active Member

    For FY 14-15, the last date for filing income tax return is 31st July 2015.

    You should invest this amount in a residential house before 31st July. In case you are unable to invest this amount in residential property, you should deposit this amount in Capital Gains Account Scheme.

    Till tht time, you can keep this amount in your savings bank account.
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