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Q.propery for sale

Q. propery for sale

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Anonymous

posted 9 months ago

i had purchased a property in 2005 in ten lakhs and now i want to sell the property in 2018 and i can sell the same @ 40 lakhs. pl let me know if i have any libility of income tax?
secondly i intend to distribute the said amount in equal part to my two daughters and my son and his wife. is there any libility of gift tax if any?
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A. The capital gain will apply on the difference amount as per the provision of the Income Tax. You can give the said amount in the bank account of your family members there will be no further tax liability.

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GANESH SHARMA

Experience: 3 Year(s)

Responded 9 months ago

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A. Yes, The difference of sale price minus indexed cost will be the amount of long term capital gain taxed @10% in the hands of the owner of the property. The gift tax is payable on the amount of gift at the applicable rate.

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Vimlesh Mishra

Experience: 26 Year(s)

Responded 9 months ago

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A. Dear Sir,
The property in question can be sold at any price. There is absolutely no BAR at selling price.
In relation to Income Tax query, yes you will have to IT on it. Since, it is a long term holding property from your side you will have to pay Long term Capital Gain tax on the property.

In relation to gift tax query, tax is not levied on gift (cash or kind) if it is given at the time of marriage.
If you want to save gift tax, then you can consult for further advice in this regard.

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Vedant Lakhotia

Experience: 3 Year(s)

Responded 9 months ago

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A. Dear Sir,
You have liable to pay tax on the net profit and also liable to pay tax on gifts. Better you consult a chartered accountant.

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A. If you purchase another property for same or higher amount ur are selling one at present with a period of 3 years, u will not be liable to pay any tax on the profit u have made on the sale of the property, but if u don't purchase a new property within 3 years, u will be liable to pay capital gain tax in the form of income tax.For exact tax rate of capital gain tax for current financial year with surcharge etc u should consult a chartered account

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Nirmal Chopra

Experience: 20 Year(s)

Responded 9 months ago

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A. yes you are liable to pay income tax at your end.

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NILANJAN CHATTERJEE

Experience: 5 Year(s)

Responded 9 months ago

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A. Section 54, 54EC, 54F Exemption from Long Term Capital Gains Tax.
The Income Tax Act has laid out exemptions under Section 54 and Section 54F to help taxpayers save tax on capital gains.

(1)Exemption under Section 54 is available on long-term Capital Gain on sale of a House Property.

you are not liable to pay any gift tax as per income tax act.

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