Taxation on property sold

Since the asset sold is a long term capital asset, Rs.50 Lakh(before applying indexation benefit) will be taxable as long term capital gain @ 20% as per section 112. However, you can avoid this by investing in one house property in India if fulfils the conditions specified in section 54F.

Hi Vinayak,

Your transaction would be covered under Long term capital gain as unde :

Sale Consideration ==                           Rs. 60Lakhs

Less: Ind. value of property purchase==   Rs. 13.20Lakhs

LTCG                                                     Rs. 46.8Lakhs(Taxable @ 20%)

In order to claim exemption you can invest the amount either in bonds as per sec 54Ec or invest in residential house as per sec 54F of Income Tax Act

sale cosnsideration = 60 lakh

less : Indexation cost of asset (approx) = 13.5 Lakh

LT Capital Gain = 46.5 

if u Purchase any new residential house 1 yr before or 2 yr after trf.

or

construct within 3 yr

Propertionate amt should be exempt.

Please refer sec 54 F.

The amount of the new residential property bought will be available for deduction as per section 54..

alternatively u can use 54EC (investment in NHAI,REC), 54F...

u also have to deduct TDS

You should purchase a residential house with in 2 year or construct with in 3 years from date of transfer