capital gain tax

i have sold my property for 32 lakhs during june 2016.The property was inherited from my mother during feb 20006.How much Tax i have to pay?.is their any time limit to deposit the amount in capital gain saving account?
Asked 1 month ago in Capital Gains Tax from Bangalore, Karnataka
hi,
there are three ways in which you can get capital gain exemption 
if you planning to purchase another property or have already purchased one year back from the sale of the property then 
under section 54:
The exemption under this section is only available to persons that satisfy the following conditions:
    An individual or Hindu Undivided Family (HUF) that legally maintains ownership of the house property;
    The house property is used only for residential purposes;
    The house property is a long term capital asset, and was not transferred or sold within the first three years after the initial date of purchase or construction.

To claim the exemption, one must invest the proceeds derived from the sale of the house property into another residential house either within two years from the date of the sale or one year prior to sale, or one must invest in the construction of a new house within three years of the sale.

The exemption amount will be:
    Equal to the amount of the capital gains if the cost of the new house property is greater than the capital gains; or
    Equal to the cost of the new house property if the cost is less than the capital gains.

Meanwhile you can park your capital gain  (full amount or utilized amount) in CGAS (Capital Gain Account Scheme)
    This is only a stop-gap arrangement, as the funds have to be used to buy or build a house within the period specified.
    The deposited money can be used only to buy or construct a residential house within the prescribed time frame.
    If you withdraw funds from this account, they have to be used within 60 days.
    If you do not utilize the amount within three years of the sale of the first property, such un-utilized amount will be treated as LTCG this will lead to taxation of the unutilized amount as long-term capital gain after three years of the sale of the first / original property.
    The interest rates paid on these accounts are the same as those on regular savings and term deposits. Kindly note that interest earned on this account is taxable.

You can invest the capital gain amount in bonds under section 54EC:

    Capital gains from sale of any long-term asset can be claimed as tax-exempt under Section 54EC of the Income-Tax Act by investing in notified bonds within six months of the transfer of Asset.
    These bonds are issued by the Rural Electrification Corporation and the National Highways Authority of India.
    The exemption is equal to the investment or the capital gain, whichever is lower. If you transfer or take a loan against these bonds within three years, the capital gain will become taxable.
    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.
    You are allowed a period of 6 months to invest in these bonds, but before the Income Tax Return filing date (to claim this exemption).
    You can invest a maximum of Rs 50 lakh during a financial year in these bonds as per Budget 2015-16.

it does not matter if the property is old.
Vishakha Agarwal
CA, Bangalore
213 Answers
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to know how much is the capital gain,
we need to know cost of the flat
cost of improvement if any
date of purchase by the previous owner (to whom your mother inherited the property).
Vishakha Agarwal
CA, Bangalore
213 Answers
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Dear Sir,

Capital gain tax will depend upon the cost of acquisition by your mother.

You have to deposit the amount of capital gain into in capital gain deposit saving scheme on or before 31 July 2017, if you don't purchase the house before 31 July 2017.

Yes you can buy old house.

Time limit for buying a house is 2 years from the date of sale of house and time limit for construction of house is 3 years.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
766 Answers
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Yes you need to deposit within 6 months of transfer.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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