Long term capital gain (sale of residence)

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CA AJAY KUMAR AGRAWAL (Querist)
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19 December 2018 Dear all, Here is a query regarding LTCG on sale of residential house. A widow (below age of 80 years) sold her residential house during FY 2018-19. The same was purchased around 25 years back. After that some construction work was done. Purchase price (as per registered deed, 25 years back) is available but no cost is available regarding cost of construction. Please suggest:-
1.How indexed cost (acquisition + construction) will be calculated?
2. at what rate Income Tax is payable on LTCG?
3. Any option to save her from Tax?

Rupesh Jain

Rupesh Jain (Expert)
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19 December 2018 you have to value of property as on 1.4.2001, on that value you calculate the index cost of house .deduct this out of sales proceeds. LTCG tax will @ 20%+4% cess on the gain value. for saving you can invest in new house purchses in two year from date of sale or construction in 3 years from sale. till deposit the amount in LTCG bank account.

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Querist)
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20 December 2018 Thank you very much for the reply. But how to arrive at a valuation (which may not be disputed by I T Department) & The LTCG will be taxable at slab rate or separate rate?

Rupesh Jain

Rupesh Jain (Expert)
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24 December 2018 LTCG 20%+4% cess and surcharges if your income exceeds Rs.50 lacs Then 10% and above 1 cr Its 15%.
take a report from registered valuer. see scection 34AB of wealth tax act 1957.

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