Hi,
I own a piece of land on my name only and want to construct a house. I do not want to add any other names as co-owners.
My mom, a senior citizen, who is a home maker(no other source of income) holds a apartment and sought her consent to sell it to help me in constructing my house.
Following are the details of the apartment :
1.Year of Purchase : 2000
2.Cost of Purchase : Rs.4Lac
3.Year of Selling : 2012
4.Cost of Selling : Rs.17Lac
The LTCG when calculated comes to Rs8Lac approx.(17 - (830/406)*4L) = 8L approx.
Following are the queries related to LTCG :
1. Inorder to consider improvement cost in LTCG calculation, should there be valid proofs(like receipts from vendors) ?
2. What are the ways in which my mom can provide me the full money from sale proceeds without having to pay any LTCG tax?
3. If there are no ways, and if we do not want to invest LTCG amount(Rs8Lac) in Infrastructure Bonds / National highway Bonds, then how is the LTCG tax calculated?
(a) Is it calculated at a Flat rate @ 20.6 % where by the LTCG tax in my case will be Rs1.7Lac (20.6 % * 8L)?
(b) Or, Can Income Tax Slab rate be taken into consideration for calculating LTCG tax, i.e, as per Income Tax Slab, the LTCG tax can be calculated as below:
8L - 2.5L = 5.5L = 5L + 0.5L. Hence Tax = (10% * 5L) + (20% * 0.5L) = Rs60K ?
4. Is it mandatory to put the LTCG amount onto CGAS account? If so within what time after sale proceeds we have to put it?
CAclubindia
