Dear Learned Members,
I plan to sell off one of my property in Delhi. As per current circle rates the total income on papers would be somewhere about Rs.25L.
Now, one of my friend suggests that this income will be taxed as Capital Gain Tax. He also advised that if I plan to keep this "full" amount in my bank, then I will be exempted for some partial amount that I have spent in purchase and construction of the house. This exemption will be based on indexation value assessed by a C.A. On remaining balance, I will be charged Capital Gain Tax.
I want to know, if I use balance (unexempted) amount to purchase another property and keep the exempted amount in my bank, then will I be charged any tax?
I want exemption from tax for the earning from sale of this property. I need some money in bank for future use for family needs and remaining I will reinvest in property. Can I do partial use of income to keep in bank and remaining balance to purchase in other property without paying any Capital/Income Tax?
Please advice!
//Saurabh..V
CAclubindia
