My Late father bought the land in 1986, my mother, sister, and I are equal co-owners, we are selling the land to a known person for less than the current guidance value and we learned the Capital gain tax will be calculated considering the sale amount as current circle/guidance value even though we are selling it less than guidance value.
since the property was bought in 1986 for indexation purposes I need the 2001 circle rate but in the sub-registrar office there is no notification for estimation of property value for 2001, I asked why they said there was no notification published that year but there is notification published in the year 1999 and 2002
now I have a few questions
1) can I take the average of 1999 and 2002 circle rates for indexation purposes? will the income tax dept accept this average as FMV of 2001?
2) for example assume 10 lakhs is today's circle rate and sale consideration is 5 lakhs and the property was bought in 1986 for 10000 rupees, taxable capital gain after indexation is 7 lakh.
now I want to know can i add 2 lakhs from my savings to the 5 lakhs I got from selling the property so that i can put full taxable capital gains in bonds to avoid capital gain tax?
Asked 1 month ago in Capital Gains Tax
Sir/Mam follow up question
1) since my mother, sister, and I are equal co-owners of the property after my father's demise, is the capital gain tax applicable to all three, or does only one have to pay tax?
how to adjust basic income limit with LTCGT, please consider the following scenario
for example, I'm 35 yrs old male and has total taxable income from salary, interest on FD, and other
sources are 3,50,000rs and ( total capital gain from selling the property is 24,00,00rs and if my
mother, sister, and I are equal co-owners and if I divide capital gain of 24,00,00rs among 3, each will
get 8,00,000rs)..... now to how to adjust my income of 3,50,000 with my share of capital gain of
8,00,000 and what will my total tax liability be?
3) since sale consideration is less than the current guidance value can't I add the difference amount from my savings so that my LTCGT will be zero?
Asked 1 month ago