Capital Gains if Residential Property used for Business

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  1. TPC Gupta

    TPC Gupta New Member

    (1) I am intended to sell my house this month cost of acquisition is as below
    cost of plot. Rs 10000/- purchased in 1988
    Cost of construction :- Rs 200000 /- on nov 1989
    Intended to sell in March/ april expected amount to receive by sell :- 1,000,000,0 ?- (one crore )
    please calculate my Capital gain amount
    (2) Though it was residential property purchased from housing co-society and was rented for commercial purpose (For printing and publishing news paper ) for which a rental agreement was signed and registered mentioning use for commercial purchase I got it vacated after ligitation upto supreme court court order sheet and judgement use of property was mention. I am paying property tax to local body as being use for commercial purpose .
    My quarry is weather the property will be branded as commercial or residential .
    TPC Gupta
    Advocate
     
  2. Dear sir ,
    commercial or residential doesn't effect on capital gain .
    For the purpose of capital gain , it is your capital assets . And on selling this property you will be liable to pay capital gain .
    And as per your information capital gain will be 8745700.
    It as advisable to invest in any residential property to claim deduction. otherwise You will have to pay almost 1700000 capital gain tax.
     
  3. TPC Gupta

    TPC Gupta New Member

    Thanks a lot Tiwari ji.I am highly obliged for the advice
     
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