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.
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 .
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