How much capital gains tax on property sale

LTCG would be Rs.25 lacs (approx).

Sir still the index rate for FY 2019-20 are not available.

However your approximate capital gain would be around 25-26 lakh and on that you need to pay 20% as tax i.e. around 5 lakh tax.

No other tax is required to be paid only your tds would be deducted by the buyer which would be 56000 and you can take credit of same.

You can save tax by investing in various options.

If you need any help feel free to contact me.

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

Thank you.

Dear Sir,

Hope you are doing well !!

To calculate the long-term capital gains tax payable, the following formula is to be used:

Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:

Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Indexed cost of improvement = cost of improvement x cost inflation index of the year of transfer/cost inflation index of the year of improvement.

In your case, LTCG would be Rs ~ 25 lakh. The LTCG is chargeable @20 plus applicable surcharge and cess.

So, you need to pay Rs ~ 5 lakh as LTCG tax.

No other taxes are required to be paid other than capital gain tax.

You can save capital gain tax by investing the money (capital gain amount) in any of the following:

1. REC/NHAI bonds within 6 months from the date of sale of house (max. 50 lacs). Such bonds shall be redeemable after 5 years.

1. Investing in another house property in India within 2/3 years.

Hi

The capital gains would come around 26 lacs. Tax on LTCG is 20.8% of the capital gain amount.

You may invest the capital gain amount in house property in accordance with section 54 or in section 54 EC eligible bonds in order to claim capital gains tax exemption.

Hello Sir,

The Sale price of your flat is Rs. 56 lakh. The purchase price of your flat would be indexed and your Indexed Cost of Acquisition would be approx Rs. ~30 Lakhs (Rs. 12 lakhs*280/113) and therefore your Long Term Capital Gains would be approx Rs. 26 lakhs. You will be liable to pay the LTCG tax @ 20.8% on Rs. 26 lakhs i.e. Rs. ~5 lakhs.

There will be no other tax liability.

Hello,

Long Term Capital Gain would be around Rs. 25 Lacs and Tax on it would be at 20.8% i.e. Rs. 5 Lacs approx.

You should look forward to making investments in different tax saving options under Sec. 54/54F/54EC for exemption of the above LTCG.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

-Yes, it is necessary to be paid.

- At the time of scrutiny, you will be liable to pay capital gain tax with penalties (interest and all). 

-You can pay tax online at http://tin-nsdl.com(Use challan 280).

-To claim full exemption the entire capital gains have to be invested.
In case entire capital gains are not invested – the amount not invested is charged to tax as long-term capital gains.

Obviously you need to pay the tax. If you dont pay tax they would start scrutiny against you charge interest penalty seize your bank account.

You can pay it online via challan like any other income tax.

You need to invest the capital gain amount in bonds for 5 years.

If the property you are mentioning is a house property then you can invest the capital gain amount in new property and you dont need to pay any capital gain tax.

I guess you are new to income tax if you need any further details it would be better if you can have a phone conversation.

Thank you

Yes, it is necessary to be paid. In case you don't, you would be liable to for interest penalty.

You can pay it online. It would be advisable to consult a CA for your income tax return and discharge of your tax liability.

You can invest the capital gain amount in house property by acquiring or constructing one or you can invest in REC or NHAI Bonds.

If you are not re-investing the money, capital gain needs to be paid. 

Pay the capital gain tax in the month of sale to avoid interest on non payment of advance tax. 

You need to invest the capital gain amount I e. 26 lacs.

1. For 54EC bonds, investment is to be done within 6 months of sale. Such bonds shall be redeemable after 5 years. Interest of 5-6% annually shall be earned on such bonds.

2. For 54 exemption, invest in a ready to move in property within 2 years of sale or purchase land and construct a house property (or invest in under construction property) within 3 years of sale.

- To save payment of capital gain tax, you need to invest either in bonds or another residential house property. In bonds you can invest up to Rs.50 lacs and within six months from the date of transfer. In case of HP, you can invest in ready to move in within two years from the date of transfer or in construction within three years after the date of transfer.

- You need to invest the amount only the capital gain and not the sale consideration.

- You can pay online.

- As the sale value of the property is more than Rs.50 lacs, buyer will deduct TDS @1% i.e. 56,000 of which you will get the credit from the tax payable.

Hi

Yes it is to be paid compulsorily.

You can invest in bonds or residential property to save capital  gain tax.

For bonds under sec 54EC ,Investment to be done in within 6 months of sale.Maximum cap is 50 lacs.Lockin 5 yrs.

For investment in residential property sec 54 will apply.Time to invest is within 2/3 yrs of sale.

Capital gain amount need to be invested.

Hope it helps

If you bought the property in 2004, the indexed cost of acquisition in 2019 will be roughly about 2.5 times, i.e., about Rs. 30 L. Your Long Term Capital Gains (LTCG) will be about Rs. 26 L. You may invest this amount in LTCG Bonds and claim exemption of LTCG. 

The gains earned by you will be long term capital gains in your hand.  The capital gains would be sale price less the indexed cost of acquisition.  The cost would be the actual cost as incurred by you to buy that property.  Indexation is a cost inflation index which is notified by the Govt.  . It is done to adjust for inflation over the years. This increases one’s cost base and lowers the capital gains. Capital gains earned by selling the property would be exempt from tax if such gains have been used for purchase within one year before or two year after the date of transfer of property or construction of a new house or has purchased a site and constructed a house thereon, within a period of 3 years after the sale of the original house. 

If you have not been able to invest your capital gains until the date of filing of return (usually 31st July) of the financial year in which you have sold your property, you are allowed to deposit your gains in a PSU bank or other banks as per the Capital Gains Account Scheme, 1988. And in your return claim this as an exemption from your capital gains, you don’t have to pay tax on it. BUt you have to make this investments within the time period

Also, you can save the tax on your long term capital gains by investing them in certain bonds. Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. Note that you cannot claim this investment under any other deduction. You are allowed a period of 6 months to invest in these bonds – though to be able to claim this exemption, you will have to invest before the return filing date

You have to invest the capital gains amount and not the selling price