I am selling my house for two crore.I am intended to by flat of same amount within a year. Will this amount is going to be taxed in 2024/25 .

Ans: Hi Alok
Buying a plot is not considered as reinvestment and eligibility is on buying or constructing a residential house.

In this case if you construct a house on the plot then you could map the capital gains from the sale of the ancestral house against the cost of construction of the house on the plot.

Also, as you have sold the house in March 2023, you would need to open a Capital Gain Accounts Scheme (CGAS) account with any nationalized bank on or before the due date for filing your tax return. The deposit of the capital gain amount in the CGAS account would be treated as reinvestment for the moment.

You need to note that this CGAS account amount has to be utilized for construction within 3 years from the date of sale of the ancestral house.

In case you are not depositing the amount in CGAS account or reinvesting in any eligible assets before filing tax return (of course before due date) then you would need to pay tax on the capital gain portion

Ans: Deductions are available for housing loan, if prescribed conditions are satisfied. Also sale of house property will be subject to long term capital gain tax.

Ans: 01. Yes. This transaction would be subject to Capital Gain Tax.
02. Under present provisions of Income Tax Act, you may opt any of the options (in case of Long Term Capital Gains), as under :
(a). Tax Rate 12.50% without indexation or
(b). Tax Rate of 20% with Indexation.
03. You may calculate your tax liability under both options & may opt for the tax regime, where tax liability is minimum.
04. Most welcome for any further clarifications. Thanks

Ans: Your capital gain will be calculated using the Indexed Cost of Acquisition (ICOA) based on the 2001 valuation of Rs. 5 lakh. After indexation, the Long-Term Capital Gain (LTCG) will be taxed at 20% after applicable deductions. You can reduce tax by reinvesting under Section 54 (buying another property) or Section 54EC (bonds).

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Your capital gain will be calculated using the Indexed Cost of Acquisition (ICOA) based on the 2001 valuation of Rs. 5 lakh. After indexation, the Long-Term Capital Gain (LTCG) will be taxed at 20% after applicable deductions. You can reduce tax by reinvesting under Section 54 (buying another property) or Section 54EC (bonds).

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment