I hv purchased a plot before 20 yrs. back @ 10000/-. Now i want to sell the same @ 1500000/-. What is the tax treatment. How to avoid tax in this
10 Replies
Devendra
(Chartered Accountant)
(4780 Points)
Replied 11 November 2011
Dear Raghu,
Reduce the Purchase price after taking the Indexation Benefit, from the Selling Price of the Plot. Your income shall be taxed under the Head Income from Capital Gains (Long Term Capital gains).
Regards,
Devendra K
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 11 November 2011
If the plot is purchaed before Apr81 then you will have to consider the FMV of teh cost of the asset as of Apr81 or the cost before Apr81 whichever higher & then accordingly apply indexation to the cost & take the indexation benefit.
Vaibhav Chauhan
(Student - CA Final)
(26 Points)
Replied 14 November 2011
invest the capital gain so computed by the methods stated above in purchasing a house property within 2 years of selling your property or construct a house property within 3 years. the amount unutilised till the filing of return u/s 139(1) should be deposited in the Capital Gains A/c Scheme of nationalized bank.
The house property so purchased or contructed cannot be sold of within 3 years of purchase or construction.
if the amount deposited in the scheme is not utilised within 3 years for the above purposes then it will be taxed in the year in which the period of 3 years expires.
Vaibhav Chauhan
(Student - CA Final)
(26 Points)
Replied 17 November 2011
u cn also invest the capital gain in bond of NHAI etc. under Section 54EC to get the exemption.
Rup Kumar
(finance manager)
(288 Points)
Replied 19 November 2011
Determine capital gain by using index cost of acquisition.
Invest the same u/s 54EC or u/s 54F.
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