Tax on property

You will have get valuation certificate from Govt. Approved valuer, as of 01.04.2001.

Say, he approves value as on that day as 15 lakhs........

So your indexed cost on today will be 272/100*  15 lakhs i.e.  about 40.80 lakhs.......

So upto that price, if you fatch in current market, you will not be liable for any tax over the long term gain.

Buyer will deduct TDS @ 1% of the consideration if consideration is Rs 50 lakh or more. Read more here https://www.tin-nsdl.com/faqs/tds-on-sale-of-property/TDS-FAQ.H T M L

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Copy paste the url in Google search page. You will get the proper link. This website is modifying the link. This is the FAQ link from nsdl portal.

Section 194IA says tax @ 1% will be deducted if the amount exceeds 50 lakh. So what if I built the house in 1992 for Rs 10 lakh. In that case, will indexing of the property be done by the valuer. If it comes out to be less than 50 lakh, no tax will have to be paid and if it exceeds 50 lakh, tax @ 1% on complete amount will be paid.

Am I right sir?

What if I sell it for Rs 80 lakh and valuer index the price at 60 lakh. Will I be taxed on 60 lakh or 80 lakh? Kindly clear the doubt, I am confused.

Thanks.

Ok Sir. Thanks but what about the comment given above by Mr. Dhiralal.