3 replies on this article “Tax on selling a property”

1. Devendra says:

   March 21, 2012 at 1:59 pm

   Thanks Justgrowmymoney, I appreciate it.

   Reply
   1. ashal jauhari says:

      March 21, 2012 at 7:15 pm

      Dear Devendra, a small correction in the calculation done by dear Justgrowmymoney. The tax rate after indexation is 20.6% So the effective tax to be paid by your brother ‘ll be 262387 Rs.

      Also please do note – this calculation is based on an imaginary CII of 2012-13, the actual gain amount as well as Tax liability may change once the CII is notified by the Govt. of India.

      Thanks

      Ashal

      Reply
2. justgrowmymoney says:

   March 21, 2012 at 12:44 pm

   First up ensure your brother holds on to this property until the completion of 3 years from possession ==> June 2012. Else you are staring at significant tax loss and reversal of tx benefts received so far.

   CII for 2009-10 = 632
   CII for 2012-13 (projected/estimate by me) = 860

   So the cost of the house bought in Jun 2009 in 2012 terms = 1375000*(860/632) = 1726277.372

   So if this is sold for 30 lacs in June 2012 then the long term capital gainon the property is Rs. 1273722.62 which will attract 10% tax of 1.27 lacs if not invested in any property or in specified bonds.

   Hope this helps

   Reply

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