Tax Liability on sale of flat by female senior citizen
Querist :
Anonymous
(Querist) 01 February 2010
This query is : Resolved
I have purchased a flat in 1989 for a consideration of Rs.2 Lac. i am selling the same house for Rs.20 lacs in Jan 2010. With the indexation what will be my tax liability. I am 80 years old and presently has no income or it is better to give gift to my son
Kumar Thadhani
(Expert) 01 February 2010
Your query is still incomplete taking into consideration of cost of improvement of your property fro the 1989 to jan 2010,Bokerage paid by you and direct incidental expenses made by you such stampduty paid for the abovesaid property are to considered for working of your tax liability.
A V Vishal
(Expert) 01 February 2010
Assuming you have purchased the property during financial year 1988-89 viz between 1-4-88 to 31-3-89, the capital gain would be:
Indexed cost of acquisition=Rs.2,00,000*632/161=Rs.7,85,090your capital gains will be Rs.20,00,000-Rs.7,85,090=Rs.12,14,910
Further you have the option of investing this money either in another residential property or invest the capital gains in notified bonds, else the capital gains is liable to tax @ 20%.
There is no bar if you decide to gift the house to your son.
soumitra basu
(Expert) 02 February 2010
I like to add with Mr. Vishal that since you are a Senior Citizen having no income at all, you will be eligible to minimum slab of income i.e. upto Rs. 2,40,000 you do not have to pay any tax.
