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sale of building

03 December 2018

if I want to sold building 6500000 in 2018 which was purchased 135000 in 1996....plz give the tax treatment... how much tax I would paid..

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3 Replies

CA Ankur Mehan (119 Points)
Replied 03 December 2018

As per ammendment in income tax act. now u have to consider value of building as on 01.04.2001. Then multiply that value with 280 and divide it by 100. the value arrived is to be subtracted from sale amount. Balance amount is Profit(LTCG) and taxable at 20%.

For Ex.

Value of building is 5,00,000.00 on 01.04.2001(as per valuation report) then 500000*280/100= 1400000.00(is consider as purchase cost), now 6500000-1400000=5100000.00 is consider as profit and taxable @ 20%. 1020000.00 is tax amount.

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Naresh Khanduri (301 Points)
Replied 03 December 2018

sir I qus more.... how much cost of improvements will I should deduct... because I have no evidence 4 such amt...

CA Ankur Mehan (119 Points)
Replied 04 December 2018

Depending on what u purchased nd what u actually spent..

Like if u purchased half connstructed building or plot then u can add construction cost.. but if u purchased complete building then u can add nominal expense..

u can over value ur building from valuer.

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