Sale of father's old properity
This query is : Resolved
25 April 2016
sir
my father buy a land in 1975 in 15000 and construction on it in 2004, now we want to sold the house in 80 lac and the the amount of sale property will be distributed in 4 part and that will be use in purchase of new house property.
my query is who will be liable for tax on slae of property and what will be treatment of tax when we purchase new house property. please answer in detail and as soon as early.
my father buy a land in 1975 in 15000 and construction on it in 2004, now we want to sold the house in 80 lac and the the amount of sale property will be distributed in 4 part and that will be use in purchase of new house property.
my query is who will be liable for tax on slae of property and what will be treatment of tax when we purchase new house property. please answer in detail and as soon as early.
25 April 2016
Capital Tax on sale of land will be paid by the registered owner. It has no impact that amount of sale is distributed among 4 parts. Exemption for new house will also be claim by that person.
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26 April 2016
sir
please tell me if i buy a house property in name of my father than what exemption we get please reply in detail.
please tell me if i buy a house property in name of my father than what exemption we get please reply in detail.
26 April 2016
Amount of capital gain will be exempted u/s 54 to the extent such capital gain is invested in the purchase of another residential property with in 1 year or 2 year after the date of transfer of property sold.
Exemption under section 54 will be lower of following :
• Amount of capital gains arising on transfer of residential house; or
• Investment in new residential house property
If till the date of filing the return of income, the capital gain arising on transfer of the house is not
utilised (in whole or in part) to purchase or construct another house, then the benefit of
exemption can be availed by depositing the unutilised amount in Capital Gains Deposit
Account Scheme in any branch of public sector bank, in accordance with Capital Gains
Deposit Accounts Scheme, 1988 (hereafter referred as Capital Gains Account Scheme).
Exemption under section 54 will be lower of following :
• Amount of capital gains arising on transfer of residential house; or
• Investment in new residential house property
If till the date of filing the return of income, the capital gain arising on transfer of the house is not
utilised (in whole or in part) to purchase or construct another house, then the benefit of
exemption can be availed by depositing the unutilised amount in Capital Gains Deposit
Account Scheme in any branch of public sector bank, in accordance with Capital Gains
Deposit Accounts Scheme, 1988 (hereafter referred as Capital Gains Account Scheme).
26 April 2016
can you please provide me calculation of capital gain (how will be calculate ) if i my purchase cost of 25000 in 1975 and construction in 2004 of 8 lac and now sale price is 80 lac than what will be capital gain, and if i invest in another house property and gift to my sons than what will be the tax liability.
25 November 2016
(A)
Base index is 100 will be taken for Rs 25000/- assume starting from 1981, 25000/100 * base index of 2004( see indexation chart for 2004 value), this will be acquisition cost
+
(B)
For cost of construction Rs 800000/(base value of 2004 ) * base value of 2016
Here, A + B denotes total cost of acquisition..
(C) sales amount Rs 80,00000/-
Solving the above, C- (A+B)
will results in LTCG
remaining treatment are already suggested by Mr Garg.
Base index is 100 will be taken for Rs 25000/- assume starting from 1981, 25000/100 * base index of 2004( see indexation chart for 2004 value), this will be acquisition cost
+
(B)
For cost of construction Rs 800000/(base value of 2004 ) * base value of 2016
Here, A + B denotes total cost of acquisition..
(C) sales amount Rs 80,00000/-
Solving the above, C- (A+B)
will results in LTCG
remaining treatment are already suggested by Mr Garg.
25 November 2016
(A)
Base index is 100 will be taken for Rs 25000/- assume starting from 1981, 25000/100 * base index of 2004( see indexation chart for 2004 value), this will be acquisition cost
+
(B)
For cost of construction Rs 800000/(base value of 2004 ) * base value of 2016
Here, A + B denotes total cost of acquisition..
(C) sales amount Rs 80,00000/-
Solving the above, C- (A+B)
will results in LTCG
remaining treatment are already suggested by Mr Garg.
Base index is 100 will be taken for Rs 25000/- assume starting from 1981, 25000/100 * base index of 2004( see indexation chart for 2004 value), this will be acquisition cost
+
(B)
For cost of construction Rs 800000/(base value of 2004 ) * base value of 2016
Here, A + B denotes total cost of acquisition..
(C) sales amount Rs 80,00000/-
Solving the above, C- (A+B)
will results in LTCG
remaining treatment are already suggested by Mr Garg.
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