Results for #capital
Legal
#agricultural#land#sell#capital
My father owns an agricultural land which he purchased for INR 25,000 17 years ago. Some miners are interested in this land due to the presence of some ores. So, if I sell it for 50 lacs will I have to pay capital gains tax? If yes, how much?
My father owns an agricultural land which he purchased for INR 25,000 17 years ago. Some miners are interested in this land due to the presence of some ores. So, if I sell it for 50 lacs will I have to pay capital gains tax? If yes, how much?
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Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
Question is vague, as it does not say whether you or your father desires to sell the plot. It would infact depend on when you got the property from your father.
Taxes & Duties
#booked#flat#possession#sell#capital
I booked a flat in 2010 and got possession in 2013. If I sell the flat now, will it attract capital gains tax? Which date is considered to be the purchase date?
I booked a flat in 2010 and got possession in 2013. If I sell the flat now, will it attract capital gains tax? Which date is considered to be the purchase date?
Answered on November 08, 2017
Yes, tax liability will arise on capital gains arising out of difference between sale consideration and purchase consideration.
As far as rate is concerned, tax will be computed @ 20% plus surcharge (if any) on long term capital asset held for more than 24 months. While tax rate will be 30% plus surcharge (if any) if the asset is a short term capital asset.
As far as date of purchase is ... (View more)
As far as rate is concerned, tax will be computed @ 20% plus surcharge (if any) on long term capital asset held for more than 24 months. While tax rate will be 30% plus surcharge (if any) if the asset is a short term capital asset.
As far as date of purchase is ... (View more)
Taxes & Duties
#sell#flat#city#capital#implications
I bought an apartment seven years ago jointly with my husband. Now if I sell this flat and buy another flat in the same city itself, what are the capital gains implications on this transaction?
I bought an apartment seven years ago jointly with my husband. Now if I sell this flat and buy another flat in the same city itself, what are the capital gains implications on this transaction?
Answered on November 08, 2017
There would be no capital gain tax if you sell the old residential flat and buy another residential flat as the capital gains can be claimed exempt u/s. 54 of the Income Tax Act. The exemption will be to the extent of investment in the new residential flat or the long term capital gains arising on sale of old flat, whichever is lower. If the investment is lower than the long term capital gains,...
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Taxes & Duties
#reduce#capital
Is it possible to reduce the tax burden on homes? What are the ways of calculating the capital gain tax?
Is it possible to reduce the tax burden on homes? What are the ways of calculating the capital gain tax?
Answered on November 08, 2017
Tax burden can be reduced on capital gains arising on sale of residential property by claiming exemption under section 54 or 54EC or 54EE of the Income Tax Act by fulfilling the condition prescribed in the sections.
Exemption u/s. 54 of the Income Tax Act can be claimed by investing the capital gains in purchase of new residential flat.
Exemption of capital gains to the extent of Rs. 50... (View more)
Exemption u/s. 54 of the Income Tax Act can be claimed by investing the capital gains in purchase of new residential flat.
Exemption of capital gains to the extent of Rs. 50... (View more)
Taxes & Duties
#flat#under-construction#property#landlord#builder
I recently purchased a flat which is in an under-construction property. The landlord and builder own half the flats each as per the JDA. The flat I am purchasing is from the landlord. He is not going to pay VAT and ST on this transaction, maybe he will pay capital gains tax. In such a situation, will the new law of cutting 1% TDS be applicable to me?
I recently purchased a flat which is in an under-construction property. The landlord and builder own half the flats each as per the JDA. The flat I am purchasing is from the landlord. He is not going to pay VAT and ST on this transaction, maybe he will pay capital gains tax. In such a situation, will the new law of cutting 1% TDS be applicable to me?
Answered on November 08, 2017
Yes, the provision of section 194IA of the Income Tax Act will be applicable in this case and accordingly if the consideration to be paid is 50 lakhs or above then TDS @ 1% is required to be deducted.
Taxes & Duties
#flat#mumbai#selling#pune#avoid
We wish to buy a flat in Mumbai after selling our flat in Pune. The flat in Pune is in my mother's name, we want to avoid capital gains, so is it advisable for my mother and father to have a joint ownership? Also, if this happens will it impact the exmeption claimed by my mother on the property?
We wish to buy a flat in Mumbai after selling our flat in Pune. The flat in Pune is in my mother's name, we want to avoid capital gains, so is it advisable for my mother and father to have a joint ownership? Also, if this happens will it impact the exmeption claimed by my mother on the property?
Answered on November 08, 2017
Since the Pune Flat is owned by your mother, capital gains will arise to your mother. By investing in another residential flat exemption u/s. 54 of the Income Tax Act can be claimed upto a value of subsequent purchase.
Further the Mumbai flat can be purchased in joint ownership of your mother and father. Joint ownership will not have any impact on exemption that will be available to your mothe... (View more)
Further the Mumbai flat can be purchased in joint ownership of your mother and father. Joint ownership will not have any impact on exemption that will be available to your mothe... (View more)
Taxes & Duties
#flat#possession#sell#capital#transaction
I purchased a flat in 2004, and another one which I will get possession of in the first quarter of 2015. I will move from the old flat to the new flat once it is ready, and then sell the old flat. I would like to minimize the capital gains tax on this transaction. How do I time the two transactions to do so?
I purchased a flat in 2004, and another one which I will get possession of in the first quarter of 2015. I will move from the old flat to the new flat once it is ready, and then sell the old flat. I would like to minimize the capital gains tax on this transaction. How do I time the two transactions to do so?
Answered on November 08, 2017
If you invest the capital gain arising from the sale of residential flat in another residential flat then the provision of section 54 of Income Tax Act shall apply (i.e selling of one residential property and purchasing another residential property within within 1 year before or 2 years after the due date of transfer of the Property sold or construct a residential house property within a period...
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Legal
#property#capital#sell
I bought a property in May 2013 with the capital gains from the sale of a property done in May 2012. When can I sell the property I bought in May 2013?
I bought a property in May 2013 with the capital gains from the sale of a property done in May 2012. When can I sell the property I bought in May 2013?
Dhiren Shah,Advocate & Solicitor
291 Answered
Answered on November 08, 2017
You can sell the property at any time, however the proceeds from such sale would again entail capital gains and the same would depend on the number of years for which you have had ownership of the property.
Taxes & Duties
#flat#term#capital#property#land
I recently sold my flat. Of the sale proceeds, the long term capital gains are about 19 lakhs. I own other property as well. Can I invest these proceeds in another flat or plot of land to be exempted from LTCG?
I recently sold my flat. Of the sale proceeds, the long term capital gains are about 19 lakhs. I own other property as well. Can I invest these proceeds in another flat or plot of land to be exempted from LTCG?
Answered on November 08, 2017
If you invest the capital gain arising from the sale of residential flat in another residential flat then the provision of section 54 of Income Tax Act shall apply (i.e selling of one residential property and purchasing another residential property within within 1 year before or 2 years after the due date of transfer of the Property sold or construct a residential house property within a period...
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Taxes & Duties
#land#capital#payment#sell#exemption
My brother has recently sold some land. He wants to buy my house so that he can minimize his capital gains tax payment. If I sell him my house, will he be eligible to claim exemption on the tax as intended?
My brother has recently sold some land. He wants to buy my house so that he can minimize his capital gains tax payment. If I sell him my house, will he be eligible to claim exemption on the tax as intended?
Answered on November 08, 2017
As your brother is selling land and is willing to acquire residential flat, he can claim the exemption under section 54F of the Income Tax Act which allows purchase of residential property against sale of any long term capital asset. If the cost of property purchased is higher than sale consideration of the land then entire capital gains will be exempt otherwise only proportionate gains will be...
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