Hello
I need to know the taxability on sale of commercial property .....
is there any provision for exemption ??
the owner of the commercial property is no more and it is sold by the son of the owner...
In case of commercial property which is owned by you, the profit on sale of such commercial property will become Capital gains under income tax law.
1. The same shall be long-term, if the property is held for more than 24 months and will be taxed at a flat rate of 20 per cent, irrespective of the quantum. You have the option to save on taxes by either investing in a residential house under Section 54F or by investing in capital gains bonds under Section 54EC ect. subject to fulfilling other conditions.
2. If the property is held for less 24 months, the same becomes taxable as short-term capital gains and is taxed as normal income.i.e if individual than as per slab rate applicable.
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