Hi. My question is whether we have option to choose to pay ltcg tax of selling a residential plot with indexation or without indexation ,whichever is lesser. Buyer is urging to sell before apr 2017 . Is there any new change coming in April 2017 other than GAAR which I think won't affect our deal. My second question is there is capital gain to selling principal residence. I have just one home and we are selling and migrating to usa Is there inheritance tax for agricultural land My email jlojockey@gmail.com
Dear Sir,
No you don't have option to pay LTCG tax, with indexation or without indexation ,whichever is lesser.
LTCG will be payable using indexation.
Yes, GAAR should not apply on this transaction.
No, there is not inheritance tax in India for agriculture land.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
After applying section 55, Can I have the capital gain amount with me until I construct my home in three years after sale. Please answer whether there is capital gain tax on selling principle residence which is inherited from parents and I live . not reinvesting after sale. Also if the inherited house if used as rental house as the owner has another principle residence, is the owner subjected for ltcg
Dear Sir,
No, if you want to avail exemption under section 54, you have to deposit the amount in capital gain deposit scheme before the due date of filing of return of income.
Yes, capital gain is chargeable in case of sale of inherited residence. However, sale of rural agricultural land is exempt from capital gain tax.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
1.Sir for giving which is suitable in your case needs to be answered after you give the date of purchase of the property and its value.
2. Yes there will be capital gains on selling of principle residence as capital gains is applicable on transfer of property whether it is residence or otherwise.
3. Sir if you are inheriting any agricultural land from your close relatives as defined in Income tax act then there will not be any tax.
Hello Sir,
1. You don not have an option to claim indexation or not. In sale of immovable property it is mandatory to claim indexation while calculating LTCG.
2. The buyer might be in a hurry since he can claim one more year of indexation if he buys the property before 31st March 2017.
3. No Inheritance Tax for agricultural land.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Hello Sir,
Capital Gain tax has nothing to do if the property is self occupied or let out.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
hi shayam sundan modani, the plot is purchased in 1998. I understand the answer is i have to pay LTCG with indexation.Please correct me if the following caluclation is wrong. purchase prize 12100 purchase year 1988 CII FOR 1988-89 IS 161 AS PER INCOME TAX INDIA. CII FOR 2016-2017 IS 1125 AS PER INCOME TAX INDIA calculation.................. COST INFLATION INDEX 1125/161 IS 6.98 INDEXED COST OF PURCHASE IS 6.98X12100 -84549 SALE PRIZE IS 720000 SALE PRIZE- PURCHAE PRIZE -BROKER COMMISON- ADVERTISTMENT 720000-12100-8800-100 ................ IS 699000 RUPEES FINALLY SUBTRACT 699000 - 84549 IS 614451 20 percent of 614451 rupees is subjected to capital gain. that is 122890 u pay to the govermnent. please correct me if i am wrong.
Yes u r right
Yes, you are right.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
yes sir the working is correct
Query Specifically asked to Mr. Shyam.