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  1. G Singh

    G Singh New Member

    sold residential house for 5cr in 2016. Indexted cost of this house comes to 4cr. Purchased new house for 4.5 cr also in 2016. Is this difference of 50 lacs spent extra on buying new property than the indexed cost amount to loss in LTCG which can be carried fwd for 8 years.
  2. V K Khanna

    V K Khanna Active Member

    No, there is no long term capital loss in this case. In fact, there is a capital gains in this transaction which is Rs 1 crore ie the sale consideration minus indexed cost of acquisition of the property ( Rs 5 crore - Rs 4 crore). You have utilised the entire capital gains in the purchase of new property and therefore exemption from payment of LTCG tax is admissible to you under section 54.

    Since no LTC loss is involved, the question of its carrying forward to subsequent years does not arise.
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