Tax on gains on a sale of land property

if the land is an agricultural land then any gain is exempt from tax. otherwise it would be subject to long term capital gain. you need to invest this capital gain in bonds of NHAI or REC or buy/construct any house property. in case you plan to buy or construct any house property, then you need to keep in mind that you will be eligible for this deduction only if you own one house property at time of purchase of this new house.

indexation is available as per i.t. act.

Thank you for the clarifications.

 

If I just intend to use the money for other activities like buying stocks, I believe 20% (with indexation) + Education cess would be my tax liabilities.

 

Any idea for a 33 year held property? I assume re-calculated amount would be near current market prices!

 

Regards,

Harsha Vardhana R

 

 

Your sale of land will attract long term capital gain. First compute long term capital gain. LTCG will have to be invested in another property or in bonds to save tax. If you do not avail exemption, you are liable to pay 20% on LTCG.

sorry but i am unable to understand this "any idea for 33 year old property". can you explain your ques. more elaborately.

assuming the property was bought before 1 April 1981 (which is very close to 33 years mark you are referring to), in absence of any cost document available,  the valuation as on 1 April 1981 shall be considered as cost and indexed thereon.

Yes, the property was bought a few weeks before 1-Apr-1981.  That would make it 33+ years.

Purchase value has been mentioned in the sale deed. I believe that would be taken as 'cost'.

you can use this value or you can get it valued as on 1 April 1981...whichever is the higher can be used.

Deduction under which sec can be availed ?