Mr. Kapoor purchased a residential house in January, 2021 for Rs. 80,00,000. He sold the house in…
The gain of Rs. 14,00,000 on sale of the residential house is chargeable as "Income from capital gains" (now section 67 of the Income-tax Act, 2025; formerly section 45 of…
Choose your answer
Mr. Kapoor purchased a residential house in January, 2021 for Rs. 80,00,000. He sold the house in April, 2022 for Rs. 94,00,000. In this case the gain of Rs. 14,00,000 arising on account of sale of residential house will be charged to tax under which of the following head?
Answer and explanation
Correct answer A
The gain of Rs. 14,00,000 on sale of the residential house is chargeable as "Income from capital gains" (now section 67 of the Income-tax Act, 2025; formerly section 45 of the Income-tax Act, 1961), because the house was held as a capital asset and not as stock-in-trade. Having been held for less than 24 months, it is a short-term capital gain.
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