Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Short Term or Long term capital gain on residential property

Save Share

This query is : Resolved

PREMAL (Querist)

02 March 2011 Dear All

Please advice about calculation of short term and long term capital gain on residential property and rate of tax there of and an option to save the tax and time frame for new investment in residential property.

Also please advice for vat tax and service tax applicability if if yer @ what rate and who has to bear it purchaser or seller for amenities agreement for furniture and other assets sold along with the flat with different agreement for assets sold.
Regards
PREMAL PATEL

prasad

prasad (Expert)

02 March 2011 First- Short term capital gain is Sale proceeds less cost of acquisition of the property along with the cost of any improvement and cost of transfer if any paid. The Short term capital gains on immovable properties will be taxed at normal rates. No special rate has been prescribed. There is no option of investment in new property or capital gain bonds.

SECOND_ No service tax is applicable in the case.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now