Hi,
As a Individual taxpayer I want to know, How to declare the tax for immovable property. If property worth 25lakhs and what will be the amount of tax needs to be paid.
Thanks & Regards,
Chiranjeevi T G
Chiranjeevi (NA) (29 Points)
16 September 2013Hi,
As a Individual taxpayer I want to know, How to declare the tax for immovable property. If property worth 25lakhs and what will be the amount of tax needs to be paid.
Thanks & Regards,
Chiranjeevi T G
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 September 2013
Are you purchasing or selling a property ?
If you are purchasing it, then you have to pay stamp duty and registration charges.
If you are selling it, then you have to do computation of capital gains, and accordingly pay tax. You can avail exemptions u/s 54, and not pay tax.
Chiranjeevi
(NA)
(29 Points)
Replied 19 September 2013
Thanks for your reply.
Lets say I have purchased It and I paid the stamp duty and registration fee. Do I need to declare this in my IT returns.
Thanks.
Chiranjeevi
(NA)
(29 Points)
Replied 19 September 2013
Lets say I borrowed money from my relatives and friends and with my investment I purchased a house. Do I need to disclose this information while returning IT.
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 September 2013
You do not need to pay tax while buying a property. But if the property value exceeds Rs. 50 lacs, then TDS has to be deducted and deposited in the bank.
Second point, if you have borrowed money from family, relatives and friends, you are required to have some documentary proof of the same.
Even if you do not show it in the IT returns, which you do not have to, this transaction shall not be missed by the IT dept. It is better to have documentary proof of borrowings to be on a safe side.
Chiranjeevi
(NA)
(29 Points)
Replied 19 September 2013
Thanks I am getting some clarity finally. Lets Say I am purchasing house worth 25lakhs, and I dont need to worry about IT Returns right?
For borrowed money I have proof of Promise Notes, Is that Fine or Do I need anything else.
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 September 2013
Where did you get 25 lacs from? If you have a proper documents to prove that you have genuinely borrowed money from family and friends, then your case becomes clear.
It is only when you sell the property, you have to show it in your IT returns, because you have gain from the sale.
Chiranjeevi
(NA)
(29 Points)
Replied 19 September 2013
I didn't borrowed 25lakhs, Lets say I borrowed 15laks and from my income I am purchasing. For borrowed money they are ready to write promise notes. Is that promise notes proof is enough?
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