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Income tax

tarun kumar jha (director) (34 Points)

05 June 2011

I m going to sale a flat purchased in the year 2001. the cost of flat at that time was 4 lacs. now i m going to sale it and i offered 16.5 lacs, how much income tax i have to pay or there will be no tax to pay.

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8 Replies

M. N. JHA (CA) (8316 Points)
Replied 05 June 2011

Pls mention month of pur and sale

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Joey Tribbiani (fdg) (2010 Points)
Replied 05 June 2011

Assuming u purchsed flat in the year 2001-02,the calculations wil be as under

Sale consideration-16.5 Lacs

Indexed cost of acquistion-4 lacs*711/426=(assuming u sell the property in the FY 2010-11)6,67,605. Your LTCG shall be Rs 9,32,394 which will be taxed at a flat rate of 20% i.e Rs 1,86,478.

However from your query it seems u will be selling your house in FY 2011-12,for which indexation rates have not been notified a yet. the above calculation was just to give you a rough idea of the probable tax liability.

Aliakbar (no) (50 Points)
Replied 05 June 2011

Sale consideration 1650000

(-) ICOA

(indexed cost of acquisition)

(400000*711/426) (667605)

Gross Long term capital gain 982395

(-) exemption under sec 54 (982395)

net LTCG taxable nil

note:

1 the py is assumed 2001-02

2 exemption is available u\s 54, if the LTCG is invested in purchase of new residential house property only, and the new hp should be kept for the period of atleast 36 months.

1 Like

sushil (sr officer a/c) (28 Points)
Replied 05 June 2011

A employee was working in a organisation. Now, he resigned from that organisation n joined other organisation. He withdraw all the dues from that company. Company has paid his Provident Fund after deducting TDS as per applicable.

Can employee may get the RELIEF of that TDS which is deducted over provident fund amount.

Regards

Gajendra Singh

TRP-T090003107

M-9808268988

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 06 June 2011

Originally posted by : Aliakbar
	Sale consideration 1650000 (-) ICOA (indexed cost of acquisition) (400000*711/426) (667605) Gross Long term capital gain 982395 (-) exemption under sec 54 (982395) net LTCG taxable nil note: 1 the py is assumed 2001-02 2 exemption is available u\s 54, if the LTCG is invested in purchase of new residential house property only, and the new hp should be kept for the period of atleast 36 months.

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Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 06 June 2011

i m agree with Ali Akbar

Nandini ( articleship) (61 Points)
Replied 06 June 2011

Sale consideration 1650000

(-) ICOA

(indexed cost of acquisition)

(400000*711/426) (667605)

Gross/net Long term capital gain 982395

If u r not going to invest the same as per sec 54...Rs 982395 will be taxed as per the existing taxable rates with an exemption of basic limit.

CA Vibhash Kumar Sah (Associate Manager) (710 Points)
Replied 06 June 2011

Originally posted by : Nandini
	Sale consideration 1650000 (-) ICOA (indexed cost of acquisition) (400000*711/426) (667605) Gross/net Long term capital gain 982395 If u r not going to invest the same as per sec 54...Rs 982395 will be taxed as per the existing taxable rates with an exemption of basic limit.

Absoutely correct. However I am putting a small clarification. Basic exemption limit will be adjusted with Long Term Capital gain only if there is a balance after adjusting the same with the other Income. Say there is a salary Income of 3 Lacs, basic exemption limit will be adjusted with this Salary Income and cannot be adjusted with Capital Gain.