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How much tax should i pay on house sell?

Tax queries 347 views 3 replies

I purchased a flat on 19/10/2010 at 18L approx. I got the completion certificate on 16/7/2011. I sold the flat at 31,25,000 on 08/05/2015. How much tax would I have to pay? Following are the additional expenses that I inccured over the period -  

I need some renovation over these years which amounted to - 1,70,000.

Cost of NOC - 12,500.

Advocate fees - 750

So total additional expenses - 1,83,250. 

Let me know if I need to provide additional information.

Replies (3)

Please do the indexation and then substract the CP from the SP wherein the Sp will include your additions expences mentioned here, then if there is CG then you pay tax if you dont intend to use it for specified purposes. If you are filling the exel or java form, it woruld automatically calculate the tax for you and you can pay accordingly.

Sale consideration: 31,25,000/-

Less:

Purchase price: 18L* indexation from 2010
Improvement cost: 1.7L*indexation from respective years

other costs:12500+750

That will give your net LTCG. You could pay tax on it or make investments to claim deductions.

I suggest you open a saving account with any bank called "capital gain Accounts scheme [CGAS]". Make an FD for that capital gain savings acc. You can purchase a new House within two years from the date of selling the old property. For funding this new house you can slowly withdraw from "capital gains saving account" .   

Capital Gains Account Scheme: If you want to bide your time and do not want to hasten into an investment, you can invest the capital gains in a special Capital Gains Account Scheme (CGAS), with your bank, which serves to inform the taxman that you do plan to invest in a property, but at a later date. Deposits under CGAS are eligible to exemption from capital gains tax, but there are some conditions:

• Such a deposit must be done before you file your income tax returns for the fiscal in which the sale has been completed IN UR CASE ay 2016-2017.

• This is only a stop-gap arrangement, as the funds have to be used to buy or build a house within the period specified.

• Funds withdrawn have to be used within 60 days.

• You will have to pay tax arising on the interest paid.

I HOPE THIS HELPS


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