Capital Gain on selling of residential rental property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2011 I have a residential flat other than this I purchase a chawl in the year 2006 and I am having a rental income from the tenants, now I sold the chawl to the builder in the year 2011. So what will the capital gain taxation and how I will save the taxes. I am not connecting with property business, I have the source of income from other business activity.

CS ,CMA Shambhu Kr. jha

CS ,CMA Shambhu Kr. jha (Expert)
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21 April 2011 Dear
you did't mentioned about the value of property but the difference between Index cost of Acquisition and value of sales will be taxable .
You need to pay tax only if you are not investing that amount again in the property business . So if you are comfortable to invest that again in the property business than you need not to pay tax at all other wise it will be taxable at a flat rate applicable for long term capital gain .
If it is possible you can show lower sales vales and get balance in cash it will save your taxes alternatively , but this is not a legal process .

Thanks