TaxTMI 
TaxTMI 
Purchase of house, avoid capital gain.
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....urchase of house, avoid capital gain.<br> Query (Issue) Started By: - sinha subod Dated:- 28-8-2025 Last Reply Date:- 19-12-2025 Income Tax<br>Got 2 Replies<br>Income Tax<br>1. We sold ancestral property of pre-1980 vintage. Have applied for valuation as in 2001. 2. Have been given to understand that paying capital gain at flat 12.5% without indexation will be more beneficial, i.e. approx. ....
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....75lacs. Ques 1. What will be additional surcharge / cess on this. I also will have approx 25lacs business income. 3. How can I save this capital gain by investing in another house / property. Details of my existing properties are: a. Property 01 - Purchased after selling one property each by self and spouse, and capital gain benefits availed. b. Pr....
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....operty 02 - This property has been paid for from personal savings and through govt loan and possession taken in 2012. However the property has not been registered in my name. There is no individual issue as the full society has not been registered since DDA alloted an institutional plot to a Govt Organisation CGHS. Same is being regularized. I am paying property tax to MCD, and ground rent to DDA ....
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....since possession, and showing rental income in my ITR for past 10 years. However, reiterated, that this property is still not registered/transfered (first owner) in my name till date (which may happen later this year). Ques 2. Can I purchase one house to save capital gain, as technically only one house is registered in my name. 4. In case it is permissible, what is the t....
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....ime limit for purchasing property without opening a capital gain account. Ques 3a. Do I have to purchase it before 31-March, 2026? Ques 3b. Does it imply full payment, or registry before 31-March, 2026? Ques 3c. What will be the additional rate of interest for payment on unutilized capital gain, as and when paid? Thank you very much Patrons, since I am in another state ....
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....and getting varied advice to reduce payment of full capital gain, which is substantial. Thank you, Subodh Reply By Ryan Vaz: The Reply: Q1. Additional surcharge / cess on 12.5% LTCG Yes, surcharge and cess apply. Assuming: * LTCG (without indexation) ˜ ?75 lakhs * Business income ˜ ?25 lakhs * Total income ˜ ?1 crore Tax Treatment * LTCG @ ....
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....12.5% = ?9.375 lakhs * Business income taxed as per slab * Surcharge: * Since total income does not exceed ?1 crore, NO surcharge applies * Health & Education Cess: 4% on total tax Effective LTCG tax rate = 13.00% (12.5% + 4% cess) If total income exceeds ?1 crore: * Surcharge @ 10% (capped so effective LTCG tax does not exceed 15% approx.) * Plus 4% cess Q2. Can you pur....
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....chase ONE house to save capital gain? Yes - Section 54 benefit appears available, subject to execution details. Key Legal Position * For Section 54, the condition is: Capital gain from sale of a residential house must be invested in one residential house in India. * Ownership is determined by beneficial ownership, not merely registration. Your Property Analysis Property Status Im....
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....pact Property 01 Registered, exemption already claimed earlier Counts as one owned house Property 02 Possession since 2012, taxes paid, rental income shown, registration pending Likely considered "owned" based on CBDT Circulars & case law ?? Risk Area: Even without registration, long possession + enjoyment + income disclosure may cause tax officer to treat Property 02 as owned reside....
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....ntial house. Reply By Ryan Vaz: The Reply: Q3. Time Limits & Capital Gain Account Scheme (CGAS) Q3a. Deadline * Purchase: ?? Within 2 years from date of sale * Construction: ?? Within 3 years from date of sale ?? 31-March-2026 matters ONLY for CGAS deposit, not purchase. Q3b. Is payment or registration required by deadline? Scenario Accepted? Substantial payment + possession ....
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.... ? Generally accepted Agreement to sell + builder allotment ? Accepted Mere booking token ? Not sufficient Registration delayed due to authority ? If possession/payment done Q3c. Interest on unutilized capital gain There is NO special interest rate. However: * If capital gain not invested OR not deposited in CGAS by due date of ITR (31 July / 31 Oct): * Exemption denied *....
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.... Tax payable with: * Interest u/s 234B & 234C * Rate: 1% per month<br> Discussion Forum - Knowledge Sharing ....