How much Income tax I need to pay on property Sale ?

POSTED BY mani_mk@yahoo.com ON January 27, 2014 12:02 pm COMMENTS (5)

I bought a land for 25 Lakh on GPA and paid 7 Lakh by cheque, later I transfer this property to my wife as registery, now I want to sale this land for 50Lakh and take the money in white (Cheque) form buyer and bought my first house in 45-50 L, how much tax I need to pay in that case ???

5 replies on this article “How much Income tax I need to pay on property Sale ?”

  1. ashalanshu says:

    Dear Mani, if the purchase value is same or higher than the sold property value, yes you can save on your LTCG tax liability under section 54.

    Thanks

    Ashal

  2. mani_mk@yahoo.com says:

    Thanks Ashal, suppose I sold my property for 50 L now and bought a house (1st on me or my wife’s name) for the same or greater amount, do I need to pay any LTCG Tax ?

  3. ashalanshu says:

    Dear Mani, as the original payment to purchase the property was made by you, the sell transaction ‘ll be taxable in your name. Please calculate your Long Term Capital Gains and plan to purchase another house accordingly to save your LTCG tax liability.

    Thanks

    Ashal

  4. mani_mk@yahoo.com says:

    Ashal. no money was paid by my wife, it was a simple transfer from my name (GPA) to registery on my wife name.

  5. ashalanshu says:

    Dear mani, how did you transfer the property to your wife? Did she pay anything to you for the price of the property or you merely registered it under her name?

    Thanks

    Ashal

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