What are the tax implications if I want to sell property ?


I plan to sell my property which I acquired 4 years back in Thane .I bought this propert for 95Lakhs +8 Lakhs fro registration etc. The current selling price is 1.05 Cr for the house alone. I want to use the proceeds for buying land in Hyderabad and invest 40 Lakhs in something.. This is my only house and I am currently working with an annual gross income of 20lakhs. I want to know the tax implications on above . I am Hindu.


Answers (2)

Long Term Capital Gains Tax are applicable on profits/net gains from sale of property @ 20 % post indexation depending on your income tax slab and 10 % before indexation.

Indexation allows to adjust the gains made on your investment, with inflation. The compounding effect of inflation can depress the real gains you make on an investment.


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This is a long term capital gain theory.
You need not have to calculate gain and to pay any tax on it,
If you invest entire proceeds either
1. Capital gain bonds in 180 days from the date of sale deed.
2. If you buy a new flat in 12 months from the date of sale deed.
3. If you construct the resd house during the 3 years from the date of sale deed.

If you does anything of the above and invest entire proceeds then you need not have to pay any long term capital gain tax on the sale of your "only house".

Otherwise you need to pay the tax on the following
Sale price of the house -
Indexed cost of acquisition (including regn charges) = Long term capital gain.

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