Mr. Kapoor purchased a residential house in January, 2021 for 80,00,000. He sold the house in April, 2022 for 94,00,000. In this case the gain of 14,00,000 arising on account of sale of residential house will be charged to tax under which of the following head?
Explanation & Strategy
Click any section to expand · only one open at a time
This problem involves capital gains tax computation on sale of residential property. The purchase price, sale price, holding period, and cost inflation index all factor into calculating long-term capital gains. Exemptions under Section 54 (reinvestment in residential property) may apply if conditions are met.