A property was purchased in 1988 for 300000 and sold in 2018 for 5300000
what would be the LTCG on it
if any tax is levied on this sale of property as the total amount was used in paying interest free loan to A
what is the tax liability of M after sale of property but not investing in any new one and paying her debts
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LTCG on sale of old property
Replies (2)
Take the market value as on 2001. Apply indexation and subtract the indexed cost of acquisition from the sale proceeds. you may furthur subtract stamp duty and any brokerage paid from the consideration. the resulting amount is capital gain and you will have to capital gain @ 20%. you can claim exemption only if the said amount is again invested in a re-invested in a residential property or invested in NHAI bonds within a period of 6 months from the date of such transfer.
Get the property valued as on 1/04/2000 from approve d valuar and index it for 2018 .The difference between sold value and index value will be the LTCG/LOSS.Mr.A will not be in figure except the Balance Sheet.
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