Dear Sir, After selling a residential property (apartment), I can invest LTCG in the purchase of another residential land (only unbuilt land and even no plan to build anything in the near future)? Please resolve my request Please confirm that interiors can be covered, yes, we will make sure we keep invoices for all purchases against Interirors. And it is a great relief to know that the cost of land can be included in the cost of construction, thank you, appreciate your quick answers. Now that you understand the basics of capital gains tax and how to calculate and produce it, let`s take a look at some ways to save capital gains tax in India when selling a property. I sold my house on November 30, 2019, now I want to give this money to my brother for the purchase of land, I can avoid capital gains tax. How can I give this money as a gift to my brother? The cost of the house is 27 lakh Hello Shreekanthji, I bought a land opened in 2005 and now I want to sell it. Can I save the capital gain by investing the same in another open plot? The plot is in the name of my mother, who is 62 years old. I already own land in my city and after the sale I want to buy another plot of land and therefore the total amount is realized from the current plot, is invested in a new plot (to buy), where I want to build a house in the future. The land I currently own was bought four years ago. So by investing the entire amount in the purchase of another piece of land, I can save on capital gains over the long term. I plan to sell my residential land worth Rs 42 lakhs after more than three years of purchase (the purchase cost was 5 lakhs, say after indexation). So, LTCG comes to Rs 37 lakhs. I already have an apartment in my name in India. Secondly, in 2010, my son had booked an apartment under construction, in which my wife and I are also co-owners.
The amount against the purchase was loan + personal savings. In some cases, EMI is also paid by me against the loan. Now the apartment has been put back in Possession in August 2016. My question is: Can I partially use the above LTCG to modify and furnish the newly owned apartment in order to obtain a tax exemption for said LTCG proportional to the draft? However, the balance of LTCG will be invested in notified bonds (REC/NHAI) within six months of the transfer of assets under Article 54EC of the Income Tax Act. If so, within what timeframe from the transfer should this be done in terms of modification, implementation, etc.? Dear Ramnath, if you sold your home within five years of the purchase, you may have to give up your tax benefits. Did you file your tax returns for fiscal year 14-15 (YY 15-16) accordingly? I had bought an apartment in February 2017 (and signed the purchase contract with the builder only in February 2017). Then I sold this property under construction in August 2019 (after ~2.5 years). The question is: the profit made by selling this apartment under construction is eligible for the tax stcg OR ltcg? I brought the house in 2009 for 15 lakh rupees of home loan. Now I want to sell this year 2019 at the expected price of 35 lakhs. What taxes do I have to pay? If I have to pay taxes, in which case I can save tax, please suggest In the case of a reply parag 0n 14 April 2016, you replied that the profit after indexation can be reinvested in another property to save LTCG. But I think last year it was converted into one house. If you own and see one house and reinvest in another, you don`t pay tax on LTCG.
When more than one has to pay taxes. Dear Sir, I bought a plot of land for 1350000 in 2017. Now I bought another piece of land for 1850000 for the construction of a house after borrowing. Now I want to sell my old property to 1400000 urgently. how will it be taxed.. According to the clause, “at the time of the transfer of the original asset, the person should not own more than one residential building, except for the new asset.” If you sell land and also own a home, I believe you cannot claim an LTCG tax exemption by buying another residential property. Please also check this with a certificate authority. Dear Pankaj, when she sells the property, she has to bear the capital gains taxes. She can give you the proceeds of the sale.
If she needs to save tax on LTCG, one option is that she can invest the LTCG product in the new property with you as a co-owner. (But the amount of profits can be exempted depending on their share of ownership of the new property) I had a Polot of 10,000/- in 1988, on which I built a house in 2001 with a capital expenditure of 500000/-, now I sold the property for 4000000/- in 2015-16, at the same time I invested the amount of 16,000,000/- in capital savings bonds (54EC) for more than 3 years. What is the capital gain for me for the 2016-17 valuation year and what is the capital gain after 3 years (if I do not plan to buy or build a property). I bought a plot of land for 72000 and after 20 years I sold for 20 lks, how much cgtax dear Kate, according to the Income Tax Act, all expenses related to the transfer of ownership can be claimed. You can deduct the expenses incurred from the sale price, which gives you the net sale price of the property. Costs incurred may include attorneys` fees, transfer fees, travel expenses, etc. Then the difference between that and the indexed purchase costs will be your capital gains. Few people are familiar with capital gains tax. This is often an unexpected tax for many people. In some situations, this can turn out to be a huge tax and increase the profits you make when selling a property. The capital gains tax you pay depends on whether it is short-term or long-term. Short-term capital gains are added to your taxable income and you must pay income tax at different tax rates.
Long-term capital gains incur 20% income tax. I have been buying land in Panipat since 1995. Now I`m thinking about building four floors on it and selling it. How the capital gain is calculated on the selling price of the floors. Please advise Dear Parag, Assuming home ownership as a home, I believe you can invest in another residential property to save LTCG taxes. Lord. My father built a house in 1993 on behalf of my mother. Heard from him, it costs 8-9 lakhs. My father died 5 years ago. Well, if my mother wants to sell the house, how can you show the cost right now (9 lakh). No bill or other barrier left only the cost of the land of the act, because that was 24 years ago. If you do not view the cost of calculating the LTCG.
1. Have acquired a residential property in 2004 for the amount x. 2. House built in 2016 for the amount y 3. After 5 years I would like to sell the property at the current market price (e.B. z) My question is a. How can I calculate the cost inflation index for land purchase (2004) and construction (2015), since the amount of the two transactions is different? b. How do I calculate my long-term capital gain for the current market based on this transaction to find out how much is taxable? Dear Tarun, 1 – If you plan to sell the apartment before registration / property, the date on which you signed the purchase contract will be taken into account for the calculation of capital gains, in this case it is long-term CG (booking date May 2013). 2 – I believe that your builder could insist on registration before issuing you a certificate of ownership., If you sell the apartment after taking possession of the apartment, the three-year period (for the calculation of the long-term capital gain) begins from the date of taking possession of the apartment. 3 – Depending on the short-term capital loss or the long-term CL, you can compensate for the losses. Great blog..
but there are some questions about how to avoid and reduce capital gains tax. We sell a commercial property ….. and what are the reinvestment options we can have after the sale …………….. Can we invest money in buying a business property to avoid or reduce capital gains tax? I bought an apartment for 3 lakhs and after 15 years I sold it for 22 lakhs. .
