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Captial Gain & Tax - Need More Info

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Captial Gain & Tax - Need More Info

Last updated: April 15 2014
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  • #21

    #21

    Re : Captial Gain & Tax - Need More Info

    This thread has been really very informative.

    Thanks Real for sharing your some useful information

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    • #22

      #22

      Re : Captial Gain & Tax - Need More Info

      LTCG & Re-investing

      Thank you, realacres for your detailed response.

      From this situation, I learnt the lesson to think about tax consequences of selling even at the time of buying.

      As much as I hate doing black transactions, if the potential buyer of my plot wants some of the transaction to be in black, I'll just go with it and use that portion to pay for the flat, and either pay up the tax on the remaining LTCG or park it in the bonds.

      I've never handled black before - so its a little scary.. say 20L of it is in black, can I just take parts of it to the bank (say 5L at a time), and get DD made for the amount in the name of the flat builder? I gather that the builder doesn't accept cash.

      thanks again in advance for any responses!

      Comment

      • #23

        #23

        Re : Captial Gain & Tax - Need More Info

        Originally posted by arv05 View Post
        Thank you, realacres for your detailed response.

        From this situation, I learnt the lesson to think about tax consequences of selling even at the time of buying.

        As much as I hate doing black transactions, if the potential buyer of my plot wants some of the transaction to be in black, I'll just go with it and use that portion to pay for the flat, and either pay up the tax on the remaining LTCG or park it in the bonds.

        I've never handled black before - so its a little scary.. say 20L of it is in black, can I just take parts of it to the bank (say 5L at a time), and get DD made for the amount in the name of the flat builder? I gather that the builder doesn't accept cash.

        thanks again in advance for any responses!
        You need to check the following things:-

        >> If builder agrees to take cash, which he will now as 80IB is no longer present for builders, infact several builders in Pune demand 7-11L in cash & some give good discounts if part amount is given in cash.

        I understand what you will feel about 20L cash, but man, it is not that difficult at all. You can pay to builder in cash + for balance amount, take DDs of less than 50k from banks where you don't have any accounts by giving cash. When you take home loan, use this cash to pay it off partially though.

        >> Another better option is to lease a shop, become proprietor of some firm, & show earnings as this money. In one yr, you will be able to adjust it off!!

        Btw, if you plan to do interiors as well, you'll require cash in any case for few lakhs. Use this amount for payments towards wood, veneer, carpenters etc.

        * PS:- Open multiple bank lockers in your as well as your mothers' name & deposit the cash here. Withdraw it as & when required. Don't keep it in house if you don't feel safe.

        Btw, see if you can get some fake bills to adjust this amount for shop if decide to start one. You need to pay 5-6% for the same but it is still worth than paying 30% to Govt, isn't it? Man, why not put this cash for better purpose like starting some new business venture?? If invested properly, you will make more money than EMIs . Ofcourse do this if there is surplus, coz house without any loan is one of the best thing which can be done .
        If you are happy, you are successful.

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        • #24

          #24

          Re : Captial Gain & Tax - Need More Info

          Reinvestment of LTCG :: Time & Calculations

          I have sold my flat & profit from it will be LTCG . I booked two Under Construction Flats ( by paying 10% amount ) 15 months before sale of my old flat . I hv paid another 40% in 12 months prior to sale of my old flat & will be paying another 30% before filing income tax return on 31st July 2012 . Now My question is will 40+30=70% will be taken as reinvestment from LTCG . I donot want to open LTCG A/c & wish to pay Tax on left over money ( Preceed from sale of old flat - ( 70% amount paid to builder } X 2 flats.


          Need Expert advise if my above calculation is correct

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          • #25

            #25

            Re : Captial Gain & Tax - Need More Info

            What if I buy the new property first with loan and later on say in a year/ o two sell the old property. I want to use the money earned from old property sale to repay the new property loan.

            Will the same rule of Long term capital tax apply. ?

            I mean is it same as investing the money earned via sale of old property into new one though the difference here is I buy the new one first and then sell the old one.

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            • #26

              #26

              Re : Captial Gain & Tax - Need More Info

              Searching for answer...

              I explain it again .
              Flat sold in july 2011.
              Bought 2 under construction flats from different builders by paying 10% booking amount in june 2010 .
              Paid 40% of LTCG till july 2011
              Will be paying 30% of LTCG untill I file my return on july 2012 .
              Possession of these flats may be offered after 4 year that is july 2015
              Now I want clarification if it is date of booking of flat or date of making payment which is counted for underconstruction property ( one year before or 3 year after sale of old flat ) as in my case booking was made one year before sale of old flat & possession can be after 3 year of sale of old flat & I want to claim LTCG only for payment made to builder within 1 year of sale of old flat untill filing of return on 31st july , 2012. I understand i cannot sell these flats till 3 years after possession..
              Please help…

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              • #27

                #27

                Re : Captial Gain & Tax - Need More Info

                Originally posted by Narasinha008 View Post
                Thanks realacres. What if the sale agreement of the old property (owning for 4+ years) is done after the buying agreement of the new property. In this case, Does the amount received from the sale of old property attract any tax ? Any idea ? Appreciate reply.
                Dear all

                my question is , my father died in 1995 and we have got katha transfered in my mothers name within one year. now we have decided to sell the property. we have optained sale deed from BDA on 31st march 2012. I just want to know ,if it is considered as stcg or ltcg. please reply immediately.

                Comment

                • #28

                  #28

                  Re : Captial Gain & Tax - Need More Info

                  Originally posted by nagarajgeeth View Post
                  Dear all

                  my question is , my father died in 1995 and we have got katha transfered in my mothers name within one year. now we have decided to sell the property. we have optained sale deed from BDA on 31st march 2012. I just want to know ,if it is considered as stcg or ltcg. please reply immediately.
                  When a property is sold after 3 years, it is called long term capital gains, charged at 20%.
                  If you are happy, you are successful.

                  Comment

                  • #29

                    #29

                    Re : Captial Gain & Tax - Need More Info

                    I had purchased a 1300 SQ Feet flat in ATS Hancindas, Indirapuram Ghaziabad in December 2009 for 35.75 lacks. After 3 years I felt that the flat is little smaller for me so I decided to get a bigger flat in the same society, If I sell my flat for 65 lacks and immediately buy a bigger flat am I liable to pay Capital Gains Tax keeping in mind that my property is still under construction, registry not done, if yes then what will be the tax.

                    Thanks in advance, I consulted many Charted Accountants but no one was able to give a straightforward question.

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                    • #30

                      #30

                      Re : Captial Gain & Tax - Need More Info

                      capital gains tax

                      Originally posted by pradsin View Post
                      I had purchased a 1300 SQ Feet flat in ATS Hancindas, Indirapuram Ghaziabad in December 2009 for 35.75 lacks. After 3 years I felt that the flat is little smaller for me so I decided to get a bigger flat in the same society, If I sell my flat for 65 lacks and immediately buy a bigger flat am I liable to pay Capital Gains Tax keeping in mind that my property is still under construction, registry not done, if yes then what will be the tax.

                      Thanks in advance, I consulted many Charted Accountants but no one was able to give a straightforward question.
                      In simple terms you will be liable to pay short term capital gains tax at the same rate of tax you are paying (10/20/30% bracket.)You will get indexation benefit.
                      this link may be of some use.http://taxguru.in/income-tax/taxabil...4ec.html.Check it out and see whether it is useful to you.
                      This is my personal opinion,it would be ideal to go for tax experts opinion as a matter of abundant precaution as amounts involved are huge.

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