Ltcg tax without indexation on sale of plot

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Rajiv Khosla (Querist)

19 February 2014 There are different views on LTCG. Some say that the only option is to pay 20% after taking indexation into account as far as sale of residential plot after 3 yrs is concerned.
Request expert opinion if there isa option of paying 10% LTCG tax if no indexation is applied.

AVTAR SINGH

AVTAR SINGH (Expert)

19 February 2014 No. That option is only in case of shares not for other assets.

Rajiv Khosla

Rajiv Khosla (Querist)

20 February 2014 I have seen on CAClub forum only where Mr. Jha as one of the expert has suggested both options i.e with and without Indexation. An article in Hindu newspaper has also suggested both options.
Can i request for reconfirmation on same please.

AVTAR SINGH

AVTAR SINGH (Expert)

20 February 2014 Long-term gains from off-market sale of securities attract a tax of 10% without indexation, while a higher rate of 20% is charged after adjusting for cost index. Effective tax rates for LTCG on sale of property is 20% (with indexation). No other option is available for lesser rate without indexation in case of residential property.

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