How property tax is calculated if a commercial property is sold in Mumbai and a new property is to be purchased within a year or so. Is there any exemption (like Capital Gains in Income tax) if property is purchased within a certain time limit after the sale of the previous property?
Basically how to deal with property tax liability in case of a sale of commercial property and purchase of a new one in one year's time after the sale?
Hope you mean Capital gains by way of Property Tax, as liability arises only by way of Capital Gains by sale of property; here commercial one. Yes, you can get exemption u/s. 54F of IT, by purchase of any residential property within two years or incase of construction within three years from the sale of your commercial property.
Dear Rambhia sir,
I am aware about capital gains as per IT act. Need to know about the liability of Property tax. Is it calculated same like income tax act?
Property tax charged by local authority or municipality, is charged annually and not on sell/purchase; except the transfer charge to be paid by purchaser for change of ownership.
Thanks rambhia sir. Can you please refer me to the act and respective section to read & follow further details..?
Refer: https://www.slideshare.net/GRealtech/property-tax-or-house-tax-in-india
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