Tax on ltcg on office premises. very urgent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2012 Sir,

My friend had sold his office premises,

Sale Value = 20,83,000/-F.y. 11-12

purchase Value= 9,80,200/- f.y. -7-08

There are two methods available to calculate LTCG.

- With Indexation( Rate .......%)
- Without Indexation (Rate....%)

Someone told me that "The option of paying tax at 10% without indexation is only available in the case of financial assets like mutual funds and the like; it is not available in the case of immovable property - for property, the tax has to be calculated at 20.6% post indexation."

Please Help.. he has to file return today itself.
Today is last date.

Pankaj Gupta

Pankaj Gupta (Expert)
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30 September 2012 What you are saying is right. In case of long term capital gain from sale of immovable property second proviso to sec 48 applies. According to this proviso , indexed cost shall be taken and rate of tax shall be 20% plus education cess@3%.