How much tax to be paid on the sale amount of my apartment in Bangalore?

I am planning to sell my apartment(in Bangalore) which I occupied in 2007 march.The construction started in dec2005 whereas we occupied in march 2007.We bought it for 33L all inclusive.Planning to sell for 37L.Prospective buyers r planning for 85% loan.
Question is:
How much tax do we have to pay?
What is the procedure for paying the tax and is there any time period for paying the tax?

3 Replies to “How much tax to be paid on the sale amount of my apartment in Bangalore?”

  1. Your purchase price is 33 lac. Multiply it by Index of inflation, which wa 551 in FY 2007-2008 and 632 in 2009-10.

    That is your cost is 33 lac X (632/551). For FY 2010-11, the figure will be higher than 632. So it appears that you do not have any capital gain.

  2. First of all tax will be on your income. Your income is a part of income from house /property. This is one of the head defind while you file your return & return is filled after completion of financial year i.e. 1.4.2009 to 31.3.2010. There is no income till now only planning. If we consider your property is sold in next year financial year i.e. 1.4.2010 to 31.3.2011. Questioned asked by you is that how much tax you have to pay , can not be answered as we do not know how much your income from salary,from business, any short and long term captial gain or income from other source. Tax will be on Income is clubbed from all the sources. What ever is your total income and tax will be on that income according to income tax slab define by the income tax deptt. In addtion to that we do not know what is saving i.e.PF,PPF,NSC,LIC ETC(rebate upto 100000/=) apart from this many other rebate also applicable subject to valid proof. Once we know all the detail only in that case we can tell you your tax liabilities. You have to fill ITR- 2 form. Last date is 31st July every financial year individual. If we consider loan angle there is no immediate tax liability as you are getting in hand only 15%. which is part of your property cost.

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