Tax on sale of house

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2012 I want to sell a house which was built in 1996. If I sell how much tax I have to pay and what rate. To save the tax What I have to do & at what amount and within how many years I have to invest from the date of sale?

Kindly suggest

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 March 2012 The house is a long term capital asset and accordingly Long Term Capital Gain shall arise on sale of such house.

Computation:

Sale Consideration
Less: Expenses on transfer
Less: Indexed Cost of Acquisition
Purchase Price * CII of FY 11-12/CII of FY 96-97

You can invest the amount in a new residential property. The amount has to be invested within a period of 3 years from the date of sale, if the property is purchased.

However, if the property is constructed, then the amount can be invested either 1 year before or 2 years after the date of sale.

However, if you are unable to invest the amount before the due date of filing the return, then the same has to be deposited in a Capital Gain Account with a nationalised bank.

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