Tax on property sale

Hi

Yes, you will be liable to pay capital gain tax. It would be a long term capital gain which is chargeable to tax @20% plus cess and surcharge, if any.

Capital gains shall be calculated by reducing indexed cost of acquisition from the sale proceeds.

You may claim capital gain tax exemption by reinvesting the capital gains into a new residential house property under section 54 or section 54 EC eligible bonds within the stipulated time limits

Dear Sir,

Yes, you will be liable to pay capital gain tax. 

Amount of capital gain would depend upon sale price, sale date, purchase price and purchase date by you.

The capital gains would be sale price less the indexed cost of acquisition. The capital gain will be taxed at 20.8%.

You can save tax by investing the gain amount in a new house or purchasing 54EC capital gain bonds. 

It is advisable to take a phone consultation for detailed discussion.

- You need to calculate the capital gain or loss and pay taxes accordingly. 

Hello,

Yes, Capital Gain would be leviable on the sale of the property.

The cost of acquisition of the property in 2015 will be indexed up to the year of sale of the property, which will by your Indexed Cost of Acquisition. That would be reduced from the Sale Consideration of the property, the resultant figure would be LTCG Long Term Capital Gain. Taxable at 20% plus cess.

For exemption from the Tax on such Capital Gain, one can invest the capital gain in another house property for exemption u/s. 54 or invest in specified NHAI/REC Bonds for exemption u/s. 54EC.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Yes you need to pay capital gain tax if you are earning any.

It will be sale price less indexed cost of acquisition as you are having long term capital gain.

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Thank you.

Yes. You need to pay Tax on Capital Gains after considering indexed cost of acquisition