Short terms capital Gain

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  1. Akbar

    Akbar New Member

    Please advise, I had purchased a property in Dec 2011, paid full payment and got it registered, later in 2013 the owners brother brought it from me as he wanted to retain there family property, and we also did not want any hassels we sold it, later after selling we some one told me that I need pay tax as this is as short term i will explain how.

    when I brought this property the govt value was 2000/Sqt, when I sold the guideline value changed to 4000 / Sqt . now there is a gain automatically.

    I have also re-invested in another property immediately @ 4000/ sqt, do i need to pay on the short term gain or in there any way to get out of this

  2. Neha Sharma

    Neha Sharma Active Member

    Dear Akbar

    Tax would be levied on such a sale.

    However, as you have re-invested the amount, your capital gain would be exempted and no tax would be levied in your case.
  3. Akbar

    Akbar New Member

    Dear Neha,

    thanks for your reply, is this applicable if I sell the property with 3 year of purchase also, kindly advise
  4. Neha Sharma

    Neha Sharma Active Member

    Sorry, I missed the dates.

    Since you sold it before 3 years, this would classify as Short Term Capital Gain and you wont be able to claim exemption under Section 54 for Reinvestment.

    That is only available in case the period of holding is more than 3 years
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