Property sale and taxes

Dear Ketan,

You will have long term capital gains to offset it u will have to invest in residential property within time frame mentioned in income tax act ie around 1 yr 

U cannot offset the loan amount of ur already purchased with the proceeds of 1 RK Flat u need to buy addln residential flat or otherway around u can invest the proceeds of 1rk flat in infrastrucutre bonds for lock in period of 3 yrs later on u can use the proceeds freely and u can pay back the loan out of it

Regards

Abhijeet

Dear Ketan,

You will have long term capital gains to offset it u will have to invest in residential property within time frame mentioned in income tax act ie around 1 yr 

U cannot offset the loan amount of ur already purchased flat with the proceeds of 1 RK Flat u need to buy addln residential flat or otherway around u can invest the proceeds of 1rk flat in infrastrucutre bonds for lock in period of 3 yrs later on u can use the proceeds freely and u can pay back the loan out of it

Regards

Abhijeet

Hi Abhijeet,

So, you mean I will have to pay 20% tax on the agreement anount, correct? How is this capital gain calculated?
Example: If I buought this 1RK flat in 2005 for 5 Lacs. Now If I am selling it for 15 lacs (10 on agreement and 5 non agreement).

Thanks,

Ketan

Not exactly on 10 lac they consider following deduction allowed

1. Cost of inflation is consider its table is available with any CA

2.if u made repairs during the period and have preserved its receipts

3.TO sell ur 1 rk flat if u have paid any brokerage to broker through cheque

after considering above deductions u will come at net amount on which ur TAX is payable @ 20%

regards

Abhijeet