Long term capital gain
Rahul Deb
(Querist) 08 January 2013
This query is : Resolved
'A' procures a residential flat in Delhi for an amount X during FY 2005-06. He pays a Buying Brokerage of X1 at the time of purchase of the said property. He then sells the Delhi property during FY 2012-13 for an amount Y. During this transaction, he pays a selling Brokerage of Y1. Subsequently, he purchases a property at Chennai during FY 2012-13 with the proceeds of the Delhi property sale for an amount Z. He once again pays a buying Brokerage of Z1 for the Chennai property. He also carries out improvements to the Chennai property for an amount of Z2. He pays an amount of Z3 as Stamp Duty/ Registration charges for the Chennai property.
Y is larger than both X and Z.
Questions:
1. Can A claim Delhi Property Selling Brokerage of Y1 while computing his Capital Gains?
2. Can A claim his Chennai property Buying Brokerage of Z1 while claiming his Capital Gains?
3. Can A claim his Chennai property Improvement expenses Z2 while claiming his Capital Gains, in case he produces all pertinent receipts?
4. Can A claim his Chennai Property Registration Charges/ Stamp Duty Z3 while claiming his Capital Gains?
5. A had taken a bank loan while purchasing his Delhi property. Since the interest paid against this home loan can be taken to his advantage while calculating his Capital Gains, would this interest paid on yearly basis also be adjusted as per CII pertaining to individual years?
Regards
Raj Kumar Makkad
(Expert) 08 January 2013
1. Yes.
2. Yes.
3. Yes.
4. Yes.
5. No if he has already taken its benefit under any other section of Income Tax Act.
ajay sethi
(Expert) 08 January 2013
you must have made substantial gains on sale of property . contact local lawyer and pay his legal fees for consultation
Rahul Deb
(Querist) 08 January 2013
1. Raj: Thanks for the kind advise: irons out a lot of ambiguous areas while interpreting Sec 54.
2. Ajay: Not much...:-) but yes, a bit: Delhi prices would always be higher than Chennai's. Since I do not know any local lawyer, the treat to both Raj (for helping out) and to (for asking out aloud) are outstanding. It'd be a pleasure to square the same.
Regards
Raj Kumar Makkad
(Expert) 08 January 2013
Thanks Rahul Deb. I also recommend you to contact a local lawyer dealing in taxation side for calculating the exact figure of your matter who may also file file ITR on your behalf.
