Please advice about calculation of short term and long term capital gain on residential property and rate of tax there of and an option to save the tax and time frame for new investment in residential property.
Also please advice for vat tax and service tax applicability if if yer @ what rate and who has to bear it purchaser or seller for amenities agreement for furniture and other assets sold along with the flat with different agreement for assets sold. Regards PREMAL PATEL
02 March 2011
First- Short term capital gain is Sale proceeds less cost of acquisition of the property along with the cost of any improvement and cost of transfer if any paid. The Short term capital gains on immovable properties will be taxed at normal rates. No special rate has been prescribed. There is no option of investment in new property or capital gain bonds.
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