Tax on selling a property

POSTED BY Devendra ON March 21, 2012 10:32 am COMMENTS (3)

Dear Friends,

My younger brother bought a flat in June 2009.

-Downpayment =225000

-Loan = 1150000

– Total cost of property = 1375000

– Current value of property =3000000

-Pricipal paid till now =23000

– Intrerest paid = 375000

He is not going to buy a flat in near future.

Now he belong to 10% taxing slab. Please help me in calculating the tax liabilities. I tried to search the forum and got several cases like mine but got very confused with indexation things. So please help. 


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

  1. Devendra says:

    Thanks Justgrowmymoney, I appreciate it.

    1. 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.



  2. 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

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