LTCG on house sale now stands reversed?

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  1. icarus2712

    icarus2712 New Member

    Hi all,

    request you to please go thru below case and advise whether i have calculated income tax correctly to be paid by seller.
    please note that the seller is jobless and has no income in this FY till now

    Property 1 : date of purchase agreement : Aug 1999
    purchase value : 72880
    sale date : june 2013
    sale value : 2500000

    Cost index 1999 :389
    2013: 939

    hence LTCG = 72880*939/389=175924-2500000=2324076 EXEMPT VALUE

    now Property 2 : date of purchase agreement : dec 2013 value 2666700(agreement + stamp duty+reg chgs)(excl of develop chgs, maintence, clubhouse etc)
    property sale : dt july 2016 value 3150000

    now since #2 was sold within 3 years of purchase hence LTCG exemption stands reversed

    full value of resale 3150000-2324076=825924 will be treated as STCG

    on this he will have to pay tax :

    now question is : 1) as per slab will he have to pay on entire amount or the amount exceeded by 5 lacs i.e 825924-500000=325924*20/100=65184

    2) he has made a partial withdrawl from his PPF account aug 2016, if he deposit say 150000 out of that back to PPF account how much will be his tax liability then

    3) MIMP: In the entire case tax slab will be applicable of 2013-14(1st prop sold) or 2016-17(new prop sold)

    would appreciate reverts, thanks in advance.
    icarus
     
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