Advice
Pawan
(Querist) 21 December 2015
This query is : Resolved
Sir,
I want to sell my house, Please advice me whether I sell it on or before 31Mar.2016 or after 31Mar.2016 to avail maximum time to purchase the new property without any pressure of Long Term Capital Gain tax.
Adv. Yogen Kakade
(Expert) 21 December 2015
When did you purchase it? Contact your tax consultant.. he will be the right person to guide you.
K.S.Srinivas
(Expert) 25 December 2015
LTCG is exempt for an individual or HUF where it is realised on sale of any capital asset, not being a residential house, if the net consideration (not merely the gains) is invested in purchase or construction of a residential house.
It should be noted that the new house should be purchased within one year before or two years after the date of transfer. In case of construction, the new house should be constructed within three years from the date of transfer. Exemption will be limited to the capital gains or the cost of the new house, whichever is lower
However, to avail this benefit, the assessee should not own more than one house other than the new asset on the date of transfer. As per the recent clarifications made in Finance Act, 2014, the purchase of house property to claim such exemption has been restricted to one residential house property situated in India. Exemption in this case will be proportionate to the amount invested in relation to the net sale consideration.
In view of the above above position, you are advised to sell the house after 31st March, 2016.
