Capital gains tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2012 I have inherited a commercial property comprising land and building presently fetching monthly rent of Rs.45,000/-. I would like to know if it is worth selling the property and depositing the sale proceeds in a fixed deposit for a regular fixed income. If it is worth selling what percentage of capital gain tax is applicable and what schemes are available to avoid paying capital gain tax?

CA Kishore Tallam

CA Kishore Tallam (Expert)
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03 April 2012 Whether the asset is worth selling or not has to be decided by yourself considering various points.
If the asset is sold (assuming long term capital asset), then the total sale consideration shall be invested in a residential house within a period of one year before or two years after the date on which the transfer took place (in case of purchase) or has within a period of three years after that date (in case of construction), then such capital gains are not taxable to the extent of investment.

Mihir Doshi

Mihir Doshi (Expert)
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03 April 2012 Agree with Expert.

Even till the time you are not able to identify property in the year of transfer of property then by due date of filling of return, you can deposit the amount in Capital Gain Scheme Account with banks and you can utilise that money to buy property within the specified time limit as explained by Expert Mr. Kishore.

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