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Flats in Chennai: Capital Gains Tax?

T S Khurana |382 Answers |Ask -Follow

Tax Expert - Answered on Feb 26, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Asked by Anonymous - Dec 20, 2024Hindi

Money

I purchased a flat in Chennai in 2004 for ?4.55 lakhs, financing it with a housing loan from Indian Bank that was fully repaid by mid-2019. I'm now considering selling the property for ?50 lakhs. Could you please help me determine the Long-Term Capital Gains (LTCG) tax implications of this sale? Regards

Ans: A Flat purchased for Rs.4.55 lakhs in F/Y 2004-05 & sold for Rs.50.00 lakhs during F/Y 2024-25, shall result in a LTCG of Rs.45.45 lakhs without Indexation (LTCG Tax @ 12.50% Rs.5.68 lakhs) or Rs.35.38 lakhs with Indexation (LTCG Tax @ 20% Rs.7.08 lakhs).
You may plan tax savings through investment in Residential House or in Capital Gain Bonds. Please note that this tax is only LTCGs tax & overall/Total tax payable may depend on your other income & tax savings etc.
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Hello Sir, I need your advice in sale of flat, Sir, I booked one Under construction flat @ Virar In June 2004 for Rs.17,74,000 and paid Stamp duty of Rs.67,440 and the Registration charges of Rs.17,740 on that , of which I for possession in June 2014, Sir, I sold that flat in June 2023 for Rs.41,50,000/- Sir, how much I m liable to pay LTCG on that and within how much time I have to pay that tax to the Income tax Authorities, as I do not intend to invest in the new property.

Ans: For calculating tax on long term capital gain on house property, indexed cost of acquisition is required be reduced from sale considered.

Indexed cost of acquisition can be calculated with the help of income tax calculator available at https://incometaxindia.gov.in/Pages/tools/indexed-cost-of-acquisition-or-improvement.aspx.

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I have taken loan this year to construct one residential house which is still under construction and I have also sold a flat for Rs.130 lakh. The long term capital gain amount is Rs.29 lakh. Now I want to repay the loan out of long term capital gain amount. Will I have to pay tax over the LTCG amount?

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