hello..a individual whose income is less 2 lacs. now he have sold his assets that is more 2 lacs . does he needs to pay tax ? pls tell the ways invest so that he s exempted from paying tax..
9 Replies
Prashant Kini
(Article Assistant)
(154 Points)
Replied 04 October 2013
plz clarify the nature of asset sold and date of purchase
nikitha chabriya
(nikitha)
(53 Points)
Replied 04 October 2013
it was purchased in year 1997. it is a plot.
CA Ramsai N
(Fresher)
(594 Points)
Replied 04 October 2013
| Originally posted by : nikitha chabriya madan mohan | ||
 |
hello..a individual whose income is less 2 lacs. now he have sold his assets that is more 2 lacs . does he needs to pay tax ? pls tell the ways invest so that he s exempted from paying tax.. |
 |
Sale price is not criteria to decide the tax liability.. If the Capital gains ( Sale Price - Purchase value with some workings) exceeds the basic slab, then he may require to pay tax
CA Ramsai N
(Fresher)
(594 Points)
Replied 04 October 2013
| Originally posted by : nikitha chabriya madan mohan | ||
|
|
it was purchased in year 1997. it is a plot. |
|
Could u specify the cost of asset purchased for and sale consideration and sale date.
nikitha chabriya
(nikitha)
(53 Points)
Replied 04 October 2013
sale price exceeds the basic slab . it was purchased around 10 lacs and sold around 25 lacs on 30.9.13
CA Ramsai N
(Fresher)
(594 Points)
Replied 04 October 2013
| Sale Price | 2500000 | |
| Purchase Price | 1000000 | |
| Indexed Purchase cost | 1000000/331*852 | |
| 2574018 | ||
| Capital gain loss | -74018.1 | |
| No need to pay tax | ||
Hope purchase was done after march in 1997 (i.e f.y 1997-98).
Since it is a plot it is obvious of getting capital loss on asset.
Any way no need to pay tax
nikitha chabriya
(nikitha)
(53 Points)
Replied 04 October 2013
and pls suggest what investment can be done..
not to pay tax for interest and all
CA Ramsai N
(Fresher)
(594 Points)
Replied 04 October 2013
| Originally posted by : nikitha chabriya madan mohan | ||
|
|
and pls suggest what investment can be done.. not to pay tax for interest and all |
|
In the above instance you need not pay tax.
If incase your getting tax you can claim exemption by investing in another house property under section 54 of IT act
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