Is there any income tax on house which i will sell after 25 years of purchase?



Bought for 1 Lac and Market price is 35 lac…I there any tax on selling the property.

Is there any income tax on house which i will sell after 25 years of purchase?
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4 Replies to “Is there any income tax on house which i will sell after 25 years of purchase?”

  1. Yes, you will have to pay Long term capital gains tax. But don’t think that you income is 34 lac. Find out in which financial year the house was purchased. Then search what the cost-inflation index for that year was. You will need this index for both the years: purchasing year and selling year. Then find out your indexed purchase price = actual purchase price X (cost-inflation index for selling year/cost-inflation index for purchasing year). Deduct this figure from your selling price. This is your income on which you will have to pay long term capital gains tax.
    And don’t think it is compulsory to pay Long-term capital gains tax. If you can do one of the two things, you won’t have to pay capital gains tax.
    1. If you finish construction of a new house within 3 years of selling your old house OR
    2. If you buy a new house within 2 years of selling your old house.


  2. sure!

    Govt is a silent partner to take profits. only thing is that the cost index formula will be applied to reduce the burden.


  3. It is also bound to raise concerns about proliferation, a major worry of the United States, which has in the past accused Pyongyang of trying to sell its nuclear know-how to states such as Syria. Analysts said the test will also serve to raise North Korea’s leverage in any negotiations with the


  4. Long Term Capital Asset:

    A capital asset held by an assessee for more than 36 months immediately prior to the date of transfer is long term capital asset. However, some financial assets as listed above held for more than 12 months are treated as long term capital assets.

    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 if any.

    Your LTCGs will approx be Rs 30 lakhs.

    Income Tax Rate on Long Term Capital Gains (section 112):
    1. Long term capital gain is taxable at a flat rate of 20%.

    HMT





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