Do I have to pay Capital Gains Tax on Sale of Property?

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  1. shiva nath jha

    shiva nath jha New Member

    I sold my one BHK house at Vasundhara, Ghaziabad for Rs.39,000,00/-( stamp value for the same as paid by the buyer at the time of registration) in May 2014 which was bought for Rs.4,30,000/- in 2003 and got registered in 2014 and cost of registration Rs.148,000/- was incurred in addition. Out of the total sale proceeds I paid Rs.36,00,000/- towards instalment of a 3 BHK house at Kundali, Haryana which is under construction and yet to be handed over. I want to know whether I have to pay any tax on capital gain and whether it is to be required to be shown in e filing.
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    As the property which you have sold was held by you for more than 3 years, therefore it classified to be a Long Term Capital Asset.

    Gains arising from the sale of a Residential House being a Long Term Capital Asset are exempted if the gains are reinvested in another residential house.

    As the gains arising from sale of property in Vasundhara have been reinvested in purchasing another residential property in Kundali - therefore the capital gains in your case are exempted from the levy of Income Tax and No Tax is required to be paid on such gains.
    R.P SINGH likes this.
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