How much will I be taxed

Hi,

Could you please let us know purchase date, cost of purchase and sales date?

Hi,

- Tax is levied on capital gain earned by you. You have not shared COA and DOA of property. Assuming cost of new property is more than capital gain then there will be no tax in your hands.

- In case of gift to son in law there will be no tax in the hands of both.

Thanks

Hi,

Assuming new property cost is more then sales consideration so there will be no capital gain tax in your hands.

In case of gift to relatives,it is exempt u/s 56. So, there is no tax liability.

However, you need to share followings for capital gain calculation:

1. Cost of acquisition

2. Date of acquisition

3. Sales date

You won't be taxed for giving gift to your son in law and you won't pay tax on 49 lakhs but you will pay tax on 49 lakhs less indexed cost of acquisition of such property and you won't be able to save tax by reinvesting in property I would suggest you to either invest in bonds u/s 54EC or in residential property u/s 54F which will help you save some tax.

Otherwise you will have to pay tax @ 20% on 49 less cost of acquisition.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi

Firstly, capital gains need to be calculated. For that, please provide the details of cost of acquisition and date of acquisition, sale proceeds and date of sale.

To claim entire capital gain Exemption, you would have to invest the capital gain amount in another residential house Property.

Hi

Tax is payable on capital gain amount .Please share cost of purchase and date of purchase and sale.

Further In order to claim exemption ,full amount of capital gain to be re invested.

Hi,

Before I can answer your question I need to know the following:

1. What is the capital gain from sale of the property.

2. What is the nature of sold property and bought property (i.e. is it a land/plot or house)

Capital gains tax will be computed on the capital gains. Since you have not shared the cost of the property sold, date of acquisition and the exact selling date, i am not in a position to compute the capital gains.

However assuming that you sold a residential property and reinvesting in a residential property and the capital gains are less than 33 lakhs, there should not be any tax implication.

The amount you gift to your son in law as gift will be tax exempt for both of you.

Regards,

Nikhil.

Hi,

1. Yes, your understanding is correct. You won't be taxed on 33 lacs assuming the new propylene which you intend to purchase is a house/ flat etc and not merely a plot

2. You will be taxed on capital gain pertaining to 16 lacs which will be little less than 16 lacs say 12-13 lacs. So you will be taxed on 12-13 lacs depending upon capital gain calculation

Hi

Since it was a plot of land which was sold, you were required to invest entire 49 lacs to claim full capital gain exemption.

However, now capital gain shall be taxed as

(Capital gain *16/49 ) * 20%

You won't be taxed for the 33 lacs of investment.

Since it was a land bought before 2001, FMV of the land as on 1.4.01 shall be used as cost of acquisition and it shall be indexed to calculate the capital gain.

Hi,

- As the plot of land was purchased before 01.04.2001, you need to obtain FMV as on 01.04.2001 to reduce the capital gain.

- On the basis of Rs. 50,000 cost, LTCG would be Rs. 47,60,000. Out of 49 lacs, you invested Rs.33 lacs in new residential property therefore exemption would be Rs.32,05,714 resulting into taxability of capital gain of Rs.15,54,285/-. Tax will be Rs.3,23,290/- assuming your total income is less than Rs. 50 lacs.

Thanks

Hi

You need to get FMV of land as on 01.04.2001 as it was purchased before 2001.That will be your cost of acquisition.

Sales minus cost will be capital gain,taxed @ 20%.

Since its land so you need to reinvest full sales consideration for claiming tax benefit.

As you already invested 33 lacs,you will be taxed for balance 16 lacs .

Hope it helps

Hi,

1. Yes, your understanding is correct. . You won't be taxed on Rs. 33 lakh provided new property is a residential property.

2. You will be taxed on capital gain only. As the plot of land was purchased before 01.04.2001, you need to obtain Fair market value as on 01.04.2001 to reduce the capital gain.

First of all you need to find out the fair market value of your plot of land for 2001-2002, then you need to find its indexed cost of acquisition and deduct it from sale consideration and that will be your capital gain amount.

Now you are selling plot of land so you can save tax either by investing in residential property or by investing in bonds.

You have not mentioned the type of property you are going to purchase from this sale value, it needs to be clear because if you are just investing in plot then you won't save any tax as there is no exemption on capital gain from sale of land if you purchase another plot.

So please make the facts clear and crisp because the section are such.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

1. Yes, you are right.

2. Only on capital gain amount.

Hi,

Since the plot was bought prior to 2001, you will need to get the FMV done as on 01.04.2001 to compute capital gains. However for capital gains exemption, you will need to reinvest the entire sales proceeds. Since you are reinvesting only 33 lakhs, you will not be taxed on that component.

You will be taxed proportionately on the capital gain pertaining to the remaining 16 lacs .

Hope that clarifies,

Regards,

Nikhil.