Capital Gain Tax
In the year 1999, I had bought a flat in Bangaluru. This was bought on loan thru HDFC. While I paid all the monies (initial and EMI), it was bought in the joint name of my husband and me. As it stands, the flat is free from all loans and is jointly held by us.
Additionally, I have recently inherited 2 floors of a lease hold property (plotted house). Though the property is more than 25 years old, I have only inherited it 6 months ago. This is a 3 floor property and is located in NCR.
Recently, a builder has approached me and offered to rebuild the property after he has acquired a floor (i.e. excluding my 2 floors) from my brother. He is suggesting that we collaborate and rebuild the premises at his cost as per the current bye laws. In lieu of this he has offered me 2 floors and some consideration (vide cheque). Currently, I stay and use both the floors of this property.
My questions are:
a) If I enter into this deal, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it as I also own a flat in Bangaluru.
b) If I enter this deal and sell one of the two floors (i.e. retain only one)and then within the next few months buy another residential property equal to the sale price of one floor and cheque consideration, will it attract short term or long term capital gain? If yes, how can I save it as I also own a flat in Bangaluru.
c) Should I sell my Bangaluru flat, will the consideration received by me from the builder still attract long term capital gain tax? If yes, how can I save it ?
d)Should I gift/relinquish my Bangaluru flat to my husband, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it ?
In short, what is the best option to save Capital Gain tax while keeping the transaction in cheque?
