Sir,
1. If we sell a second home, after 5 years of purchase, hope the tax rebates (principal / interest) enjoyed will not be reverted.
2. If cost price during purchase before 5 years = 60 Lakhs (registered value of the deed) ; CII : 280 / 220 = 1.27 ; Indexed cost = 60*1.27= 76 Lakhs;
If Selling Price : 80 Lacs >> LTCG = 80L-76L = 4 Lakhs.
a) Is LTCG tax applicable is 20% on 4 Lakhs?
b) If the assessor is in 30% slab, Still LTCG applicable is 20%
c) If the assessor pays 20% tax on 4 Lakhs = 80,000, Then is he free to invest the sale proceedings 79.2L (80L-80K) or
he need to invest this amount in buying next house / Govt. Bonds for saving tax only.
d) Should we mention this entire corpus(79.2L) as income, and where to declare in return.
f) If the above corpus(79.2L) is invested in FD/POMIS etc., hope only the interest earned attracts tax.
CAclubindia
