Capital gain in a partnership firm.
Vishal
(Querist) 02 February 2013
This query is : Resolved
My partnership firm has sold a commercial office space. I want to know de rules of capital gain tax(short or long), what is the applicable tax rate and how can i save the same . Thank you.
Raj Kumar Makkad
(Expert) 02 February 2013
You have not told when such property was purchased and the rates of the purchase are also to be disclosed same as date of sale and the sale provide so that definite reply may be given.
Vishal
(Querist) 02 February 2013
July 2010 I purchased 322 sqrft for 22 Lakhs app.
I plan sell it in after March 2013 for around 83 Lakhs. What would be my tax liability if I sell before July 2013 (short term capital gain) or after July 2013(long term capital gain).
How can i reduce or save tax in both the gains.
It's a commercial office space in the name of a partnership firm.
Thank you.
C. P. CHUGH
(Expert) 02 February 2013
In case the property is owned for a period not exceeding 36 months, it would be charged as Short Term Capital Gain and would be taxable at Normal Rate of Taxation (Maximum Marginal Rate i.e. 30% in case of Firms, Company etc). You shall not be entitiled to any deduction/exemption under section 54 either. However if the holding of property is for a period of more than 36 months, it qualifies to be termed as Long Term Capital Gains and is taxed at a fixed rate of 20%. You shall also be entitled to various deductions/exemptions available under section 54 and its sub-sections.
Thanks
Vishal
(Querist) 03 February 2013
Thank you everyone for the advice.
Can you guys help me with options of tax saving under long term capital gain for my partnership firm.
Thanks.
