INCOME TAX ON SELLING OF FLAT

This query is : Resolved

LALIT (Querist)
Follow

06 December 2010 I had purchased a flat in Jan 2007 for Rs 20 lacs and now in Dec 2010 I am selling it for Rs 40 lacs. My annual salary is Rs 1.80 lacs.Can you tell me the exact tax to be paid by me if I do not want to repurchase a flat again and want to use the entire amount to start a business.And is the tax calculated by you need only be paid by Jul 2011 when I am filing my ITR or before that. If so than by what date.

CA Vinay Gandhi

CA Vinay Gandhi (Expert)
Follow

06 December 2010 Hi Lalit,

In your case, it will be Long-term capital gain.
Capital gain will be 12,60,116/-
You have to pay tax of 2,52,024/-
You have to pay tax by December 15th if you are going to sell before that date.
Otherwise, you can pay on March 15.

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
Follow

06 December 2010 Its a long term capital gain....

Upgrade to CAclubindia Pro. Subscribe Now!

CA Dhiraj Ramchandani

CA Dhiraj Ramchandani (Expert)
Follow

06 December 2010 Hi buddy, using mobile, so not feasible for me to calculate tax.. But will tell u how to do. A. LONG TERM CAPITAL GAIN TAX : ur long term capital gain is Rs. 20 lacs, but taxable amount will be 2000000x711/519 (cost of inflations for year 06-07 & 10-11).... Then such amount will be charged @ 20%... B. NORMAL TAX : ur normal tax will be on Rs. 20000 @ 10%.... C. Add both above amounts, and on them add edu. cess @ 2% & higher edu cess @ 1%.... D. U need to pay such tax amount by 15th december.. If u failed to pay, then lattest by 15th of march'11......