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Guys I had sold my old house and want to purchase commercial property(Office) in gurgaon. From selling house I got 20L white cheque payment.... Now If i use this 20L for commercial property(Office) then there is no issue ? |
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Can i sell house and purchase commercial property -tax issue
Replies (11)
As per my opinion it is not possible to claim exemption from capital gain on inv. in commercial property
You should purchase a residential property where commercial activities are allowed.
I suppose 20L is the capital gains. you should invest in NHAI/REC bonds or new house. Untill then the money should be kept in Capital gains Accounts in in any nationalised bank.
| Originally posted by : S. Shiroor | ||
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You should purchase a residential property where commercial activities are allowed. I suppose 20L is the capital gains. you should invest in NHAI/REC bonds or new house. Untill then the money should be kept in Capital gains Accounts in in any nationalised bank. |
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Thanks a lot for replying. What if I want to purchase commercial property ? with minimum tax paying ? How much tax is on commercial property
Can you tell me about What is Capital gains Accounts ? Right now Money is in Private bank Saving account.
Capital gain account means that account open for deposit the money from selling of capital assets until u havent invest for another purpose which save gain tax.
Thanks, But I deposited in my personal saving account. Is there any issue ?
What if I want to purchase commercial property ? with minimum tax paying ? How much tax is on commercial property
Go to your bank (Nationalized) . ask for a capital gains saving account form - fill it - transfer the sale proceeds of old House in that. Remember if your indexed cost of purcahse is X and you sold for Y including brokerage. Then only (X-Y) need to be put in this account. If you dont deposit in CGSA then I think there is some penalty. You need to prove to AO if inquiry/scrutiny comes that the capital gains exemption was proper. If you buy commerical property there is no exemption in capital gains - 20% of 20 lakhs viz 4 lakhs you haave to pay capital gains tax.
Exemption u/s 54 or u/s 54EC is possible if u invest ur consideration in another one residential property or Bonds of NHAI/ REC respectively....
In ur case if u want to acquire commercial property then u have to pay capital gain taxes on profits from sale of house property(subject to indexation).... Rate of taxes would be 20% but limited to 10% without indexation.....
You can purchase a commercial property from the proceeds of sale of your old house. There is nothing to worry about. Only thing is, you have to pay income tax @ 20% on capital gain calculated as per the manner provided in income tax law.
| Originally posted by : Shivam gupta | ||
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You can purchase a commercial property from the proceeds of sale of your old house. There is nothing to worry about. Only thing is, you have to pay income tax @ 20% on capital gain calculated as per the manner provided in income tax law. | |
Can you please explain it in detail?
Hi... Reference this discussion chain; I have a question too. If I sell a residencial property, but buy a modern-day residencial suite (basically, a service apartment for personal living purpose) built along with a Mall, then do I still need to pay Capital Gain Tax on the entire amount?
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