Tax

Hi,

You don't need to pay any capital gain tax as there is no capital gain in above transaction.

In this case when you purchase property you will have to pay tax u/s 56(2)(vii) by declaring the difference amount i.e. 12 lakh less 6 lakh as income from other sources and when you sell this property your purchase cost would be 12 lakh and sale value would also be 12 lakh because of section 50C and so you will have to pay zero tax at time of sale.

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Thank you

Hi,

There will be no tax liability at the time of sale of the property.

Regards,

Nikhil

Hi,

No tax liability at the time of sale of property.

Capital gain tax will be around 1.8 lacs.

You need to pay tax on 6 lacs @30% as it will be a short term capital gain.