The following taxes apply on a reslate flat:
1) 5% Stamp Duty (Consideration Amount or Market Value of the flat, whichever is higher)
2) Registration (1% of consideration or 30000/- whichever is lower)
3) Capital Gains Tax -
(a) Short Term - If you sell the flat within 3 years of possession, a 35% short term capital gain tax is applicable on the gain. Gain is calculated as the profit earned at sale.
(b) Long Term - If you sell the flat after 3 years of possession, a 20% long term capital gain tax is applicable on the gain.
Gain = (Sale Price - (Cost Inflation Index in the year of sale / Cost Inflation Index in the year of purchase) * purchase price).
eg.
You purchased a flat in FY 2013/14 and sold it in FY 2016/17
Purchase Value = Rs 1,00,000 in 2013-14
Cost Inflation Index value in 2013/14 = 939
Cost Inflation Index value in 2016/17 = 1125
Sale Price = Rs 4,00,000
Gain = 4,00,000 - 1125/939* 1,00,000 = Rs 280191.69
Tax = 20% * 280191.69 = Rs 56038.34
(c) No Long Term Capital Gains is applicable if you invest your capital gain (as calcualated in (b) above) in another flat 1 year before date of transfer/sale or 2 years after date of sale/transfer. If you purchase in an under construction flat, you must ensure that the possession of this flat must be within 3 years from date of transfer/sale.
