Long Term Capital Gain tax payable ?-on sale of Property
ABCDEFGHIJKLMN
(Querist) 07 November 2009
This query is : Resolved
Hi Expert Panelists,
Sice I do not know under which category this query may be answered, I have raised the query to both the panelists (1)On Taxation Matter and (2) On property Law.
I have a question about LONG TERM CAPITAL GAIN TAX.
(1) I have purchased a residential flat in March’06
(2) I had a residential Plot only (without any accommodation built on it).I held it for more than 20 years. Recently I sold it in March ‘07. I am under impression that no LTCG is payable for immovable properties, like Shares and Stocks.
(3) I had a commercial Property held for more than 25/30 years.I sold it in March’08
The purchase cost of residential Flat purchased in March’06 is more than the total receipt of residential plot and commercial property.
In view of above do I have to pay any LTCGain? If yes at what rate?
Bhasker Parikh@gmail.com-Date 07/11/09
1120 hrs
Vineet
(Expert) 07 November 2009
dear mr parikh
1. both the residential plot as well commercial property are capital asset and since you have held both the properties for more than 3 years, you are liable to pay long term capital gains tax on transfer of these properties.
2. if you purchased residential flat within one year prior to transfer of plot (which is not clear fom the querry, you could have claimed exemption of long term capital gains tax u/s 54F on sale of residential plot to the extent of proportional investment in flat, subject to other conditions prescribed in that section.
3. Your investment in flat will not come to rescue for capital gains arising out of sale of commercial property which is chargeable to tax @20.60% plus surcharge @10% (if your total income for AY 2008-09 exceeds rs 10 Lakhs). i presume that you have not deposited the sale consideration in capital gains Account with notified banks, there is no exemption allowed for this income. The income is taxable in AY 2008-09 for which due date has already expired. Please file a belated return before 31-3-2010 and pay tax and interest applicable.
Raj Kumar Makkad
(Expert) 07 November 2009
Fourth time posted quarry on a same day.
pkpworld..
(Expert) 07 November 2009
One person has to pay income tax on annual income earned or accured during a FY.
As the transactions in March, 06 and March 07 are relating to AY 2006-07 and AY 2007-08 respectively & the time for filing return of income has been lapsed, noting to do about the payment of tax or filing of return by yourself unless the IT department knok at your door. So keep silence for these transactions.
As regard to sell of commercial properthy- You have to pay tax on the gain from the transfer. The gain is a LTCG and chargeable to tax @20%(flat rate).
However If you have not filed the ruturn for AY 2008-09, you can file this on or before 31/03/2010. If you already filed a return within due date without showing this LTCG then you can file a revise return.
