What is the tax for sale of property ?

As owner of the land your father will be liable to pay long term capital gain tax over the sell of land.

You will not be liable to pay anything when your father gives that tax paid money to you via banking mode.

As the owner who sells land/plot is your mother..... she will have to pay about 20% over LT cap gain.

Originally posted by : Harsha Yareshimi
	my father bought site in 1989 for ₹50,000 now that site costs ₹60 lakh ...after saling if i credit ₹60 lakh to my bank account ..may i pay tax for that ? how much ? what kind of tax i've to pay ? income tax or property sale tax ? will bank deduct directly in my account ?

When you sell this immoveable property - the buyer of this property will have to deduct TDS @ 1% from the sale proceeds i.e. you will get Rs. 60Lacs minus Rs.60000 = Rs.5940000 in the bank account. The bank will not deduct and tax, it is the buyer who will deduct and pay you the balance. This deducted TDS can be claimed back as mentioned below.

This sale transaction will have to be shown in the income tax return of your mother since after your father's death she is the righful owner of the property being sold. In her return capital gains will have to be calculated as follows:-

Sale Consideration                    = Rs. 6000000

Less: Indexed cost of acquisition 

(50000*272/100)                        (-) Rs.136000

Capital Gains                           = Rs.5864000

Tax @ 20% will have to be paid on this capital gain of Rs. 5864000 in case exemption benefit is not taken.

In case this is a house property , exemption can be claimed under section 54, 54F or 54EC.

In case this property is a land ( urban land) , exemption can be claimed under section 54F or 54EC.

The TDS deducted at source at 1% by the buyer can be claimed back by showing it in the Income tax return.

In case the property is an agricultural land, then this capital gain will be exempt and no need to show in the Income tax return and no need to pay any tax.

Mr. Harsh Yareshimi,

Bank fix Deposits are not investments in you case

Originally posted by : Harsha Yareshimi
	sir ... Bank fix deposits are not investments ..?!

For saving tax on capital gains arising from sale of property , only the investments mentioned under section 54,54F. 54EC etc will be considered as investments and not any fixed deposit etc.

Please get the return filed from a qualified professional only in your case.