I am a 36 years old salaried individual. I bought a flat 7 years ago for 5 lakh and sold it recently for 16 lakhs. I purchased another flat this year for 32 lakhs. How do I file my return?


Answered on November 09, 2017
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  • Difference between sale consideration (16 lacs) and indexed purchase cost (5 lacs plus indexation) will be charged as capital gains. Since you are purchasing new residential property of Rs. 32 lacs, the entire capital gains will be exempt u/s. 54 of the Income Tax Act which is available on sale of residential property by investing in new residential property. For ther year under consideration, you will have income under the head salary and capital gains, ITR 2 needs to be filed with income tax authority. In the schedule Capital Gains of ITR 2 , you have to fill in the details of property sold and the details of exemption from capital gain claimed u/s 54 of the Income Tax Act
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