Dear All,
I had purchased a property in 1981 for Rs. 1,91,000/- incl all cost of aquisition. Spent Rs. 4,50,000/- for dismantling and reconstruction in 1985. used the property for commercial and residential use (personally) till 2002. Did modifications for Rs. 4,75,000/- and gave it on rent and getting Rs. 1,50,000/- rent per month.
now, i want to sell this property for a consideration of Rs. 1 cr.
the capital gain tax of 20% on the sale price less cost of aquisition and improvement (considering the indexation) is the only option. can i opt for flat 10% without indexation on real estate also.
now, regarding reinvesting the capital gain in purchasing a RESIDENTIAL PROPERTY ONLY. i had just purchased a residential property in 2012 and want to purchase a commercial property for my business. will this be allowed.
Sandep
CAclubindia
