Tax on real estate sale

Dear Sir,

1) LTCG would be 5.08 lacs and LTCG tax would be 1.05 lacs

2) Yes in the ITR of F.Y. 2017-18 (A.Y. 2018-19) due on 31.07.2018.

3) Assuming equal share with your father, your LTCG would be 2.54 and LTCG tax would be 0.52 lacs.

Note-If you have income from any other source which is less tha max. threshold limit then you will get the benefit of shortfall from the LTCG. No deductions u/s 80C to 80 U are allowed from LTCG.

Thanks

Hi,

Indexed cost of thw flat= 22×272÷200= 29.92 lakhs

Selling price = 35 lakhs

Capital gains = 5.08 lakhs.

LTCG will be 20% of 5.08 = 1.02 lakhs + edu cess whixh is approximately 1.05 lakhs

Yes you will need to show this in the ITR of F.Y. 2017-18.

If your father is a co-owner, the capital gain will be equally allocable to both of you and the taxes will also have to paid accordingly.

Hope this clarifies.

Regards,

Nikhil

Hi,

1. Yes, You and your father will be required to pay long term capital gain tax.

2. Yes, it will be your current year's income.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi

If the property was purchased in FY 12-13, indexed cost of acquisition comes to around 30 lacs. So capital gain would be around 5 lacs. Tax has to be paid @20% on 5 lacs.

The capital gain shall be divided between you and your father.

Also, exemption can be claimed by reinvestment of the capital gain amount.

1) No deduction of interest on home loan would be available while computing LTCG.

2) Indexation of actual cost incurred by you in the year of sale.(i.e. cost as per registry documents)

3) It depends in which source you want to invest. For bonds it is 6 months from the date of transfer and for property it is 2 years in case of purchase and 3 years in case of construction.

4) It includes real estate. bonds and real estate.

As LTCG tax is only 1 lacs which again divided between you and your father, I don't think there is need of reinvestment

Hi,

No, interest paid on home loan is not considered for computing LTCG.

Yes you will need to do the indexation of the registration cost of the property. You may add direct expenses like brokerage etc also for thr purpose of computing capital gains.

You need to buy a residential property within 2 years or construct a property within 3 years of transfer of the old asset. You can also invest in the specified bonds within 6 months of the date of transfer.

It is residential property and bonds. Since the capital gains amount is small for you, you can investbthe same in the bonds.

Regards,

Nikhil.

.

1.Interest paid on home loan is not considered while calculating LTCG.

2. Taking the indexation benefit ,your cost will come to around 30 lacs.

3.Investment in property to be done 1 yr before or within 2 yrs from sale of property.

4.You can invest in bond under sec 54EC to save tax.

Hi

1. Interest on home loan is provided as deduction under house property head annually and cannot be a part of cost of acquisition unless interest relates to pre acquisition period.

2. The value shall be value as in registry of the flat.

3. 6 months, if investing in 54EC bonds; 2/3years if purchasing/constructing a house property.

4. You can invest either in a house property or a land and then construct a house. Or you can buy 54EC bonds for capital gain amount which shall be redeemed after 5 years.

Hi,

1. Yes, if you have not claimed any benefit earlier u/s 24.

2. Yes it will be indexed. What is your exact question?

3. It depends upon where do you invest. If you invest in new property, its 2 or 3 years. If you invest in bonds its 6 months.

4. Real estate and NHAI/ REC bonds.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com