Capital gains on sale of house property

Hi, I had sold my apartment in year 2018 September. Do I need to show that sale on property? as it going to be three year now. I am pending to file ITR for FY 2020-2021 which I believe have time till December.

Hey @Tabish_Ansari ,

You had to show the sales of the apartment in FY 2018-19 ITR. If you are selling a property during the period 01-04-2020 to 31-03-2021 then only you are required to show that sale on property in the current ITR. The due date for filing ITR for FY2020-21 is 31st December for non tax audit filers.

Hope it helps.

Team - Can you help guide which plan should i opt if i need to file ITR for next year for my mother who is a pensioner and sold a house / flat in FY 2021-22?

Also after selling the house, is it ok to park the funds received from buyer in my mother’s savings account (before filing ITR in 2022) and investing in Capital Gains Savings Scheme or Capital Gain Investment Bonds before 31 March 2022?

Please help.

Hi @aniruddha_41, since you have capital gains from sale of property, you should file ITR-2.
You can invest the money you have deposited within the period specified by the bank, if you fail to do so, your deposit shall be treated as capital gains.

Here’s are a few articles that might be useful.

Thanks @Yash_Kaviya. Do you have a tool to calculate capital gains tax from the sale of property? Above investments make sense if I am incurring capital gains. It could even be that I am incurring capital loss. Just need to assess if I even need to sign up for capital gain bonds or cgas. Please let me know. Thanks.

Always happy to help @aniruddha_41, you can log on to Quicko and easily add all your details in the House Property tab to calculate your gains/losses with indexation after which you can decide whether to sign up and invest in Capital Gain bonds or CGAS.
If you require any assistance, please let me know, would love to help.

Hi @Yash_Kaviya - after logging in, i am unable to find out “house property” tab? Can we please connect privately over email:
I need guidance on how to calculate the capital gains tax from sale of property in your portal. Very much appreciated your help and guidance.

Hey @aniruddha_41, once you login, you need to click on “Filing”, then click on prepare your return, once you click that, under the “Income” tab you’ll see “Capital Gains” and you can fill the relevant details under “Did you sell immovable property?”.
Let me know if you face any further issues. I’ll help you to resolve the issue.

Got it. Thanks @Yash_Kaviya

@aniruddha_41, happy to help. :blush:

Flat Booked on 27/Apr/2010
Paid full purchase value(Got Allotment Letter) rs.45 Lakhs@Booking(total Purchase amount paid rs.45lakhs)

Registration Done & Stampduty paid on 3/Mar/2016 (Also Possession on 3/Mar/2016)
Here Reckoner Value was 89lakhs and stampduty paid on rs.89lakhs(Rs 478000/- stampduty & Registration)

Acquisition Amount for income tax calculation would be 45lakhs Or Rs.89 lakhs and also what would be Acquisition date for Indexation calculation, 27Apr2010 or 3rdMarch2016

Property Sold on 31/May/2022
Rs. 1.22cr

What would be the Net amount on which LTCG would be paid after Indexation?

How much Amount I need to Invest in Bonds…

Hi Team,

I need your guidance for IT preparation for next financial year for my pensioner father.

My father intends to sell his house this financial year (FY 2022-23) and also purchase another plot / construct a house in another city within one year of sale. The house that he intends to sell was constructed in 1970 (so LTCG tax will apply).

My father is also owning two other houses (one joint with my mother - senior citizen) and another flat in his own name.

I am confused in terms of whether my father will be eligible to get exemption from capital gains tax if he uses the sale proceeds from one house to construct another house in another city in India. Please can you help guide me?

Also, can my father purchase a plot (using his own savings / pension) in his name along with me as a joint owner before selling the house and still claim capital gains tax exemption i.e. after the sale happens, he will use the net proceeds from the sale to start constructing the house in the plot purchased before the actual house sale?

Objective is to purchase a plot at the earliest as the cost of land is going up everywhere.

Thank you.

Hello @aniruddha_41,

Yes even if your father is owning two other houses he is eligible to claim exemption under section 54 of Income tax act.

There is no geographical boundaries mentioned for new house purchased in Section 54.

Also he can buy a new house as joint owner, just he will be able to get exemption proportionately.

Hope this helps!


Thanks for clarifying Bharti

I reside in a jointly owned residential house A with my brothers, where I barely have a room to live. All of them have multiple rooms.

3 months back, i sold a jointly owned residential plot B (with my brothers).

Now, i want to buy a flat/ apartment C to reside.

Can I claim capital gain exemption under sec 54 with respect to B & C.

If yes, can i use sale proceeds from B elsewhere & use a home loan instead for C?

Thanks in advance

Hi @Shivam_Kapoor

As per the income tax act, section 54 is applicable if a taxpayer sells his residential house and from its sale proceeds, purchases another house within 2 years in order to reduce the capital gain tax.

Thus, you can claim a capital gain exemption under section 54 by selling your residential house B and purchasing another house with its sale proceeds.

But in a case, you want to use your sale proceeds anywhere else and want to take a home loan then section 54 is not applicable.

Read more about section 54 here,

Hope it helps.

Thank you for your prompt reply.

Please clarify with respect to the following:

Property B - we had “purchased as a residential house”. The house was demolished as we planned to build a new house. Unfortunately, the new house was never built. Ultimately, property B was “sold as residential plot” as the house was demolished.

Still, i can claim exemption under Section 54.

Thank you a million in advance.

Kind Rgds.

Hi @Shivam_Kapoor,

In such a case, you’re not eligible to claim an exemption, since the asset sold should only be residential house property. As the house is demolished it would be considered land. Hence it is not satisfying the condition to claim an exemption under section 54.

Additionally, a taxpayer can claim an exemption under section 54F on the sale of a long-term capital asset against the construction of a residential house if the required conditions are fulfilled.

You can book a MEET for expert assistance to solve your personalized queries.

Hope it helps.

I want to start a Pvt Ltd company.

So my brother has a property in his name.
He is paying EMI for the loan he took to buy the property.
He is also a director in the company.

I have 3 questions.

  1. If my brother transfers the property in the company’s name, what are the LTCG implications?

  2. Is my brother still required to pay LTCG (or) the company should pay LTCG?
    If the company pays LTCG, is it considered as an expense?

  3. Can the EMI being paid written off as company expense?

@Shrutika_Shah @CA_Niyati_Mistry @Muskan_Balar

Hi @dtyxg

Here are the answers to your questions.

  1. If the property is transferred to the company, it will be considered a sale of the property as the ownership of the property will change from your brother to the company, and hence LTCG will be applicable in the hands of your brother. You can read about Capital Gain Tax on Sale of Property/Land - Learn by Quicko for a better understanding.
  2. Your brother will be required to pay the LTCG as he is the person making the sale and the income is earned by him.
  3. The EMI paid cannot be claimed as a company expense.

Hope this helps.

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