Pratik K (Service) (47 Points)
24 February 2016Hi,
If a person above age 60 yr, whose yearly income is Rs.50,000 and wants to sell his property.
He is getting Rs. 18 lac in cheq and 2 lac in cash.
Can he show this as his income? and does he have not pay any kind of tax if he show this as his income?
kindly suggest.
Rashi Bajaj
(CA)
(752 Points)
Replied 24 February 2016
The sale consideration will be taxable under capital gains tax after giving indexation benefit.
Contact your CA to do the final computation. He is best suitable to advice on minimum tax liability.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 26 February 2016
Yes it is Capital gain tax....
If a property is sold within three years of buying it, it is treated as a short-term capital gain. This is added to the total income and taxed according to the slab rate.
If a property is sold after three years from the date of purchase, the profit is treated as a long-term capital gain and is taxed at 20% after indexation.
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