Obligation on selling flat after 13 yr of purchase at Baroda

This query is : Resolved

V R Kanetkar (Querist)
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13 October 2010

QUERY RESUBMITTED, PLEASE HELP

Respected expert,

My wife , 56, worked with SBI for 29 yrs and took VRS in 2007. We (myself, wife, and our only son) stay at Andheri(w) in a 1 BHK flat which is in my name. We also have a flat in Kandivali(w) in my son’s name and wife’s name (where wife’s name is second as a joint owner).

There is a 1 BHK flat in Baroda in my wife’s name (which was purchased in 1998 and where I stayed between 1998 and 2005 due to my job in Baroda). The purchase amount in 1998 was approximately 3L. The flat is in a society / apartment , which was constructed in either later 80’s or early 90’s. My wife now wants to sell this flat and expected amount is approximately 10 L.

I would like to know the following now.
Once she sells this Baroda flat what is her obligation as far as Income tax / property gains / immediate investment etc. is concerned.

Both me and my son would like to see that she benefits to the maximum since it is her flat and hence her money.

Thanks with warm regards.

Dr. V. R. Kanetkar

nilesh gupta

nilesh gupta (Expert)
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23 December 2010 Sir

in above transaction you have to pay Income Tax on Long Term Capital Gain on flat.

for calculation of LTCG we require year in which assets was purchase. u have not manition year of purchase, so plz give year of purchase, so we can calculate your tax liability