12 replies on this article “Tax implication on sold property”

1. immanuel guru says:

   March 16, 2013 at 11:01 am

   Hi Ashal,

   Thanks for the replay and suggestion.I will declare full amount I receveid.
   I invested 10 Lakh in residental plot. I will construct house in next 1.5 years.

   Once Again thanks for your qucik replay.

   Regards
   Immanuel

   Reply
2. Ashal Jauhari says:

   March 16, 2013 at 2:15 am

   Dear Immanuel, You mean to say, 19L was the agreed value & registered value is 17L Rs? Well My dear friend, what about the difference of this 2L Rs? Where is that money? Had you received it in cash as a black money transaction? if your answer is yes, please declare this money & calculate your LTCG on this 19L figure. We encourage honest tax paying & want you to do the same. there is more to it, if your case comes into scrutiny at all, you w’d feel the heat from IT people at that time for concealment of income.

   Thanks

   Ashal

   Reply
3. immanuel guru says:

   March 16, 2013 at 12:02 am

   sorry… Please read it as * Property sale deed

   Reply
4. immanuel guru says:

   March 15, 2013 at 11:55 pm

   Hi Ashal,

   On agreement paper sale price is Rs.1965000/- for the property I sold. But property sale dead which is registered is for Rs.1755000/-.
   Which one should I consider as sale value for computing LTCG ?

   Regards
   Immanuel

   Reply
5. Ashal Jauhari says:

   March 15, 2013 at 11:32 pm

   Dear Immanuel, what do you mean?

   Thanks

   Ashal

   Reply
6. immanuel guru says:

   March 15, 2013 at 11:04 pm

   Hi Ashal,

   Which value should be considered for LTCG tax calculation. 1.value shown in agreement document or the value shown in Registered absolute sale dead document.

   Regards
   Immanuel

   Reply
7. immanuel guru says:

   January 16, 2013 at 4:42 pm

   Hi Ashal,

   Thank you so much.

   Regards
   Immanuel

   Reply
8. immanuel guru says:

   January 16, 2013 at 11:46 am

   Hi Ashal,

   Thanks for the quick response. You put it very simple and clear.
   Just one clarification required. If I buy a residential site with this LTCG does this qualify for tax saving ?. andin how many months I should invest this amount in property ?

   Where i will get Cost inflation index for reference.

   Thanks in Advance

   Regards
   Immanuel

   Reply
   1. Ashal Jauhari says:

      January 16, 2013 at 12:50 pm

      Dear Immanuel, do you want to invest in a plot to save LTCG tax liability. The plain answer is no. You w’d have to construct a house on it within the 3Y from the sell date of old property. Here 3Y means, the construction should be over & possession of the house should be with you.

      Thanks

      Ashal

      Reply
9. Ashal Jauhari says:

   January 16, 2013 at 12:06 am

   Dear Immanuel, the purchase FY applicable to you is 2007-2008. So here goes the calculation.

   A. Purchase FY = 2007-2008
   B. Purchase year Cost inflation index = 551
   C. Purchase cost = 660000
   D. Sell FY = 2012-2013
   E. Sell Year CII = 852
   F. Indexed purchase price = 660000*852/551 = 1020544
   G. Sell Price = 1965000
   H. Long Term Capital Gains = G – F = 944456

   Now you can save Tax on this 9.44L Rs. amount either by investing in Capital Gain saving bonds or by purchasing another residential property.

   Thanks

   Ashal

   Reply
10. immanuel guru says:

    January 15, 2013 at 10:44 pm

    Hi Ashal,

    Exact date of purchase is 15-Oct-2007 and sold on 11-Jan-2013

    Regards
    Immanuel

    Reply
11. Ashal Jauhari says:

    January 15, 2013 at 6:38 pm

    Dear Immanuel, What’s the exact date of purchase of your house?

    thanks

    Ashal

    Reply

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