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Question Reagarding Income tax

Hardik Dave (IPCC and CS Professional(FINAL) Student) (15533 Points)

01 July 2011

If Any Person Purchase Housing/Commercial Property in The Year 1975 for Rs. 10,000, . . . . . . . . After 35 years, in The Year 2011, Value of Housing/Commercial Property Is Rs. 2,50,00,000, . . Now, he have not willing to pay tax of Rs. 10,00,000 , and Remaining 2,40,00,000 will have remain in hand, . . . . Then what is the Solution of This Problem ?

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11 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 July 2011

unless the house is sold, no question of capital gain.

no capital gain, no tax

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valji (Accounts manager-MBA) (2150 Points)
Replied 01 July 2011

agree with mr sharma

pawan yadav (C.A. Final) (45 Points)
Replied 01 July 2011

If Property has Not Transfer then No Capital gain Arise, and no capital gain tax attracted on Property.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 01 July 2011

Originally posted by : U S Sharma
	unless the house is sold, no question of capital gain. no capital gain, no tax

AGRRED.

Sunshine (Helping All) (10575 Points)
Replied 01 July 2011

yes Hardik, Capital gain arises on account of transfer of capital asset...just because of change in value he doesnt have to pay tax...The property must be transferred i.e sold for the question of capital gain to arise...

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Mukesh Kumar Singh (CA-FINAL) (4094 Points)
Replied 01 July 2011

Originally posted by : U S Sharma
	unless the house is sold, no question of capital gain. no capital gain, no tax

Agreed

CA Himanshu Khurana (Chartered Accountant) (813 Points)
Replied 01 July 2011

Originally posted by : Sunshine...
	yes Hardik, Capital gain arises on account of transfer of capital asset...just because of change in value he doesnt have to pay tax...The property must be transferred i.e sold for the question of capital gain to arise...

srinivass (CA Final) (2466 Points)
Replied 01 July 2011

without sale how could we calculate tax

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 01 July 2011

YES , I DO AGREE WITH ALL OF THE EXPERTS ABOVE THAT HOLDING A PROPERTY IS NOT TH TRANSFER WITHIN THE MEANING OF SECTION 2(47) , SO SINCE BASIC CONDITION OF CAPITAL GAIN THAT IS THERE MUST BE THE ASSET AND TRANSFER DOES NOT FULFILL , SO NO QUESTION OF CAPITAL GAIN ARISE , HOWEVER YOU MAY FALL WITHIN THE AMBIT OF WEALTH TAX LIABILITY.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 01 July 2011

in this case no capital gain tax

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Rup Kumar (finance manager) (288 Points)
Replied 02 July 2011

Mr. Hardik you have asked a incomplete question. The message given all above friends are true. However since the question is not complete the answer is can't be completed.