Dear Experts,
There is a land property in my name, in Karnataka. The property has been in my name for more than 33 years. Now I plan to sell my property for a profit.
Is the gains from property sale taxable though it has been held for a long period? If yes, is there any indexing applicable depending on the state governed land revenue rules? If taxes are applicable, are there any schemes like Government Schemes, Bank FDs etc to make the gains tax-free? .
Please advise.
Regards,
Harsha Vardhana R
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.
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.
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