Tax on ltcg on office premises. very urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2012 Sir,

My friend had sold his office premises,

Sale Value = 20,83,000/-F.y. 11-12

purchase Value= 9,80,200/- f.y. -7-08

There are two methods available to calculate LTCG.

- With Indexation( Rate .......%)
- Without Indexation (Rate....%)

Someone told me that "The option of paying tax at 10% without indexation is only available in the case of financial assets like mutual funds and the like; it is not available in the case of immovable property - for property, the tax has to be calculated at 20.6% post indexation."

Please Help.. he has to file return today itself.
Today is last date.

Pankaj Gupta

Pankaj Gupta (Expert)

30 September 2012 What you are saying is right. In case of long term capital gain from sale of immovable property second proviso to sec 48 applies. According to this proviso , indexed cost shall be taken and rate of tax shall be 20% plus education cess@3%.

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