3 Replies to “How much tax will have to pay for sale of 1 property.60 % is whiteThe property would fetch around for 50L.?”

  1. 1.5L is is non taxable.if you have any insurance upto one lak is entitled for reduction plus any health policy upto 15000.total of 2.65 is non taxable.charatable donations are also considered. the rest is calcuilated by 30 percent.for insurance advise you can e-mail me.

  2. the tax is not calculated the way you have written. it is the sale price in white less cost price in white. the cost price can be increased using the CIF index and the the differnce is taxable @ 30 %. instead of giving all such private details on site, better hire ac accountant or take services of a CA. the calculation should be exact and as per rules and tax deposited in the govt treasury accordingly

  3. Computation of Long-term Capital Gain
    1. Take the full value of consideration (full sale price without any deductions),
    2. Deduct
    •Expenses incurred for the transfer,
    •Indexed cost of acquisition, and
    •Indexed cost of improvement.
    3. Deduct exemptions under sections 54, 54B, 54D, 54EC, 54ED, 54F and 54G.

    Income Tax Rate on Long Term Capital Gains (section 112)
    1. Long term capital gain is taxable at a flat rate of 20%.
    2. If long term capital gain is covered by section 115AB, 115AC, 115AD or 115E, the tax rate is 10%. Also, if the listed securities/units are transferred and the benefit of indexation is not taken, then long term capital gain is 10%.
    3. Deductions under sections 80C to 80U are not available on the long term capital gains.
    4. Secton 112(1)a provides some relief to resident individual and HUF.
    5. If the transcation (after September 30, 2004) is covered by securities transaction tax, then the capital gain is not charable to tax (section 10(38)). (Conversely, long term capital loss, is such cases, is taken as equal to zero.)

    Full sale price in your case is 60% white. Don’t be so foolish as to advertise this fact.

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