Navdeep Singh (Others) (49 Points)
30 June 2017I have a house built in the year 1992 . Let us say it cost me around 10 lakh that time. Now I want to sell it for 30 lakh. How much tax will be deducted and what is the procedure? If any supporting document can be provided, it will be really nice.
Thanks.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(161206 Points)
Replied 30 June 2017
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.
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 June 2017
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
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 June 2017
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.
RAJA P M
("Do the Right Thing...!!!")
(127535 Points)
Replied 30 June 2017
Navdeep Singh
(Others)
(49 Points)
Replied 30 June 2017
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.
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 June 2017
Navdeep Singh
(Others)
(49 Points)
Replied 30 June 2017
Ok Sir. Thanks but what about the comment given above by Mr. Dhiralal.
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 June 2017
Poltu Ghosh
(Job)
(1865 Points)
Replied 30 June 2017
rama krishnan
(12234 Points)
Replied 01 July 2017
CAclubindia
