Capital gains from sale of properties
1 year ago
I sold a property on 2020 which was on my name for 45 lakhs. I sold my house in 2022 which was on my wife's name for 95 lakhs. With the proceeds of both, I bought a new house for 75 lakhs registered on both me and my wife's name in 2022.How much capital gains tax should I pay? How much is exempt? (My wife has not filed for taxes in her life, I am filing tax regularly)
A.Dear Client
To calculate the capital gains tax on the sale of your property, we need to know the following information:
1. The cost of acquisition of the property that you sold in 2020
2. The cost of acquisition of the property that your wife sold in 2022
3. The selling price of both properties
4. The cost of the new house that you purchased in 2022
As per the Income Tax Act, you can claim an exemption on long-term capital gains by investing the proceeds in a new house. The exemption is available under section 54 of the Income Tax Act.
In your case, as you have purchased a new house for 75 lakhs, you can claim an exemption of the total capital gains under section 54.
As your wife has not filed for taxes in her life, so I will suggest you to consult a tax expert for proper compliance of tax laws.
To calculate the capital gains tax on the sale of your property, we need to know the following information:
1. The cost of acquisition of the property that you sold in 2020
2. The cost of acquisition of the property that your wife sold in 2022
3. The selling price of both properties
4. The cost of the new house that you purchased in 2022
As per the Income Tax Act, you can claim an exemption on long-term capital gains by investing the proceeds in a new house. The exemption is available under section 54 of the Income Tax Act.
In your case, as you have purchased a new house for 75 lakhs, you can claim an exemption of the total capital gains under section 54.
As your wife has not filed for taxes in her life, so I will suggest you to consult a tax expert for proper compliance of tax laws.
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