Tax imposed on sale of property

As per Sec 54, if you acquire RESIDENTIAL HOUSE within 2 years of date of disposal from Capital gains amount, you can get 100% deduction. To attain Sec 54 deduction, you have to utilize funds before ROI or have to deposit all money into special account before ROI.

APart from Sec 54, Sec 54F can also be used, This is only usefule if you have only 1 residential house...Acquiring one.

Thanks Harpreet Ji for the reply.

So does that mean that i should not mention anything in in my return of this year in case i i invest the same amount in another property? or do i have to mention it somewhere?

I actually file my returns myself, and have very less know how in the taxation part.

Mr. rahul,

There is no benefit available for Short-Term Capital Gains.  you would have to pay tax on the STCG without any tax benefit.  Moreover, there is also no indexation benefit available for the short term capital asset. You have to pay it as per your tax slab

Regards

Garvit

Originally posted by : Garvit Dave
	Mr. rahul, There is no benefit available for Short-Term Capital Gains.  you would have to pay tax on the STCG without any tax benefit.  Moreover, there is also no indexation benefit available for the short term capital asset. You have to pay it as per your tax slab Regards Garvit

Thanks Garvit for your response. So does that mean that i will have to pay tax on 4.5 lacs as er my tax slab. 

Is there any way that i can save that by investing somewhere?

Mr. Rahul,

STCG on sale of residential property shall be taxable as per tax slab, no exemption available. You dont have any option but to pay short term capital gain tax. So it is recommended to hold any house property till 3 yrs as less than 3 yrs it is short term.

Originally posted by : Garvit Dave
	Mr. Rahul, STCG on sale of residential property shall be taxable as per tax slab, no exemption available. You dont have any option but to pay short term capital gain tax. So it is recommended to hold any house property till 3 yrs as less than 3 yrs it is short term.

Which means that i will have to pay around 1.35 lacs as tax? is there any  way through which i can save this tax?

Originally posted by : HARPREET SINGH
	As per Sec 54, if you acquire RESIDENTIAL HOUSE within 2 years of date of disposal from Capital gains amount, you can get 100% deduction. To attain Sec 54 deduction, you have to utilize funds before ROI or have to deposit all money into special account before ROI.   APart from Sec 54, Sec 54F can also be used, This is only usefule if you have only 1 residential house...Acquiring one.

Mr Harpreet,

Section 54 & 54Fof the Income Tax Act, 1961 is applicable only on the capital gain arises from the transfer of a long-term capital asset and not legitimate in case of short term capital gains

Mr. Rahul,

You dont have other option than paying off your -short term gain tax on same

Originally posted by : Garvit Dave
	Mr. Rahul, You dont have other option than paying off your -short term gain tax on same

Thanks Garvit for the response.

I called up  the IT help line number and asked them about the short term capital gains about property and even asked them about the tax liability, they said that i will have to pay 15% flat on the net profit amount. is it right?

If not then i will have to pay accoring to my tax slab?

Originally posted by : Rahul Baweja
	Originally posted by : Garvit Dave Mr. Rahul, You dont have other option than paying off your -short term gain tax on same Thanks Garvit for the response. I called up  the IT help line number and asked them about the short term capital gains about property and even asked them about the tax liability, they said that i will have to pay 15% flat on the net profit amount. is it right? If not then i will have to pay accoring to my tax slab?

Mr Rahul,

It will be as per your tax slab and not 15%......if you fall under 30% tax bracket thn you have to pay accordingly.