i have received some amount of my late father property amount pay in cheque/cash both & i am purches one plot. pls. give me advice amount show in return
RE:Income of anseshnal property
by Naresh Sharma on Apr 02, 2008 04:28 PM
You have to pay capial gain tax on the property sold. Compute profit by reducing Indexed cost from the sale price.
Sale price is the registry price.
Indexed Cost will be the value of property as on 31.3.1981 multiplied by the cost inflation index.
However you can save tax by constrution of house on the plot within 3 years of sale date.
If construction is not completed by return file date say 31.7.2008 then you have to deposit the money in Capital Gains Account with a bank.
RE:plot
by prashanth m on Apr 02, 2008 03:24 PM
hii, no its not taxable...but u can invest some amount from that then u will get tax free...if u need more details call me or mail me 9980178522 hmp.kumar21@gmail.com
RE:plot
by Kanreddy JayaprakashReddy on Apr 02, 2008 03:43 PM
It is taxable as capital gains, but not for 20lakh. It is calculated as sell price minus buy price is profit and that will be treated as capital gains. If you bought that plot for 10lakh and now you sold it for 20lakh, so 10lakh is profit. Capital gains tax is applicable for this profit amount. There are some other calculations also made with respect to this. It is advisable to contact any CA for further details.
dear friends. i would be obliged if you can answer my querry also. I purchased a flat in sept 2005 and the agreement value is 6.25lacs if i wish to sell the same flat now at approx 10.00 lacs then what could be the tax implication. also should i wait for some time if it is going to save more tax for me. i had also availed a home loan againt this and the principal outstanding as of now is 4.90 lacs and in the past 2? years i have also availed incometax exemption for int. and principal repayment...regards
RE:tax implication....
by Simon Peter on Apr 02, 2008 02:53 PM
If you sell it before sept 2008 then I think you fall in short term capital gains. Better wait and sell it after Sept 2008 and get long term capital gains which can be fully exempted if invested again in residential property or Govt Bonds.
RE:tax implication....
by nitin ahuja on Apr 02, 2008 02:51 PM
if u invest ur profit in the next six months, then it will be tax free, else u need to pay tax on the same
RE:tax implication....
by BINOD PRASAD on Apr 02, 2008 02:58 PM
Dear Nitin, it is advisable to sell the property after 36 months from the date of transfer as it will made you eligible to deduct the cost of acquisition applying Index, and if possible invest your money in buying another residential plot in order to avail income tax benefit.
I recieved the gift as marriage gift from close relative after four years of marriage . At the time of marriage they were not present in India. Is this taxable
RE:Gift after Marriage
by DAVINDER ARORA on Apr 02, 2008 03:15 PM
If received from a "relative " , then any amount is tax free. If received from a person who is not a relative as per income tax act definition then amount upto 50000 is tax free and over and above this threshold limit, would be taxable and added in your income uncer the head "income from other sources" . CA Davinder Arora
RE:How is dividend on Share exempt
by DAVINDER ARORA on Apr 02, 2008 03:17 PM
Dividend from shares is tax free as per section 10(34) of Income tax Act.
RE:How is dividend on Share exempt
by dinesh vijay on Apr 02, 2008 02:29 PM
Even Dividend from shares is tax free in the hands of an investor, companies pay a dividend distribution tax before the dividend is paid out
The income tax exemtion for agricultural income says, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income. I think all the middle level or rich farmers who are taking exemption is fooling IT deptt. As per this clause even Bank interest on their deposits can constitute the base for their non-agricultural income and then agricultural income added to it should make all such farmers taxable. This doesn't happen in actual practice. Everybody knows it but don't want to make those powerful middle level / rich farmers with lot of Votes in their pocket, annoyed.
RE:agricultural income tax
by The Monk Who Never Bought A Ferrari on Apr 02, 2008 02:22 PM
Define rich farmer? How much land he owns? What is his income? Any basis for your calculation?
RE:agricultural income tax
by chetan shetty on Apr 02, 2008 02:43 PM
you both first be thankfull to those farmers what ever size they may be....if he stops producing will you quit your white collar jobs and work on fileds under hot sun ? IT better stay away froma ny farming community as its the back bone of indian economy and in whole feeding indians...note that year by year farming area and people are reducing and one day we may face conditions like africa...without food to feed our own people...
RE:agricultural income tax
by amaze on Apr 02, 2008 03:05 PM
Mr Shetty, if he quits his IT and gets into field he will be called a farmer... it doesnt matter who, but there is still a FARMER
I am a Sr.Citizen and I bought one house at Vadodra,which I am selling for Rs.Ten lakh in the end of April 08.What will be tax implication out of this capital gain ? A K Verma,
RE:Tax on Capital gain ?
by MARX on Apr 02, 2008 02:20 PM
you have not specified the period in which u bought the house and the capital gain. based on this one will be able to know whether the gain is short term or long term. this is further subject to price indexing also.
RE:Tax on Capital gain ?
by RUPESH VERMA on Apr 02, 2008 02:42 PM
dear marx. i would be obliged if you can answer my querry also. I purchased a flat in sept 2005 and the agreement value is 6.25lacs if i wish to sell the same flat now at approx 10.00 lacs then what could be the tax implication. also should i wait for some time if it is going to save more tax for me. i had also availed a home loan againt this and the principal outstanding as of now is 4.90 lacs and in the past 2? years i have also availed incometax exemption for int. and principal repayment...regards
RE:Tax on Capital gain ?
by Rajesh Hunsikatti on Apr 02, 2008 02:49 PM
Dear Rupesh
You will be taxed for (10-6.25)=3.75, if you sell it before sep 2008, u will subject to short term capital gains, even after after that u will be taxed under long term capital gains, but then u can use indexation as a tool to avoid taxation. In case if you invest the entire amount again into any other long term asset like land, house, etc, there will be no tax on you.
RE:Tax on Capital gain ?
by RUPESH VERMA on Apr 02, 2008 02:56 PM
thank you very much...regards...rupesh. can you tell me what is the percentage of shortterm & longterm capital gains tax....I do wish to invest the same for purchase of a new flat..
RE:Tax Exception on Mortgage loan
by nitin ahuja on Apr 02, 2008 02:53 PM
yes, it is ! principal will be deducted from your tax investments and interest will be deducted from your taxable income !
RE:Tax Exception on Mortgage loan
by DAVINDER ARORA on Apr 02, 2008 03:25 PM
interest paid will be deducted from your taxable income under the head " income from house property " as a negative income and principal repayment would be added in your tax investment ( and not deducted as per nitin's advise) to allow you dedcution u/s 80 C.
RE:Tax Exception on Mortgage loan
by rajesh mohanty on Apr 02, 2008 02:20 PM
YES INTEREST AND PRINCIPLE BOTH ARE EXEMPTED BUT U WILL HAVE TO GET A LOAN STATEMENT FROM BANK AT THE END OF FINANCIAL YEAR
RE:RE:Tax Exception on Mortgage loan
by khayum pasha on Apr 02, 2008 03:19 PM
If the mortgage loan is availed on the security of a site for the purpose of business in the form of Overdraft from the bank, what are the implications of tax paid on such withdrawals. I believe your reply is for a mortage loan in the form of a Housing Loan. My question is on mortgage loan for business purpose.
