i have purchased a property worth 5 lakhs 5 years before. now I am selling it for 10 lakhs and it will be credited to my bank account.
shall I have to show it as income while filing itr? how much as income?
what could be the tax percentage on property income?
what if I buy another property immediately? can I save any tax?
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tax on property sale
Replies (2)
Transfer of capital asset (property in your case) is taxable under section 45(1).
Gain will be Long Term Capital Gain since held for more than 36 months before aale and will be taxable @ rate 20%.
You can avail exemption either under section 54 or 54EC or 54F....
Gain will be Long Term Capital Gain since held for more than 36 months before aale and will be taxable @ rate 20%.
You can avail exemption either under section 54 or 54EC or 54F....
"Shall I have to show it as income while filing itr?"
MANDATORILY
"how much as income?"
Capital gains after indexation, (roughly 3 lakhs), along with other income/s.
"what could be the tax percentage on property income?"
20%+ cess .... roughly Rs.60,000/-
"what if I buy another property immediately? can I save any tax?"
Yes exemption u/s. 54/F (depends upon nature of property sold) can be claimed by purchase or construction of a house property within next 2/3 years.
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