TAX ON SALE OF PROPERTY.

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  1. Rajesh sethi

    Rajesh sethi New Member

    My Anti ( a senior citizen) become owner of a property after the death of his husband. which she sold within two year of purchase ( his husband purchased it @ 17 lac) & after his death she sold it @ 42.50 lac what will be the tax liability on her at the time of sale ??
    Secondly if she re invest in purchasing another property will she get the tax benefit ??
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Gain from sale of this property comes under short term capital gain and is taxable based on slab rates.
    Since the said property is not a Long Term Capital Asset(period of holding is less than 3 years),She won't get any benefit by reinvesting the capital gains in another property.
     
  3. Rajesh sethi

    Rajesh sethi New Member

    OK Thanks
     
  4. Rajesh sethi

    Rajesh sethi New Member

    Dear Sai Tejesh,
    Based on above info.

    Purchase price 17 lac, sale price 42.50 can you please calculate short term profit tax amount and advise. Her age is 65 years.
     
  5. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Short Term Capital Gain (42.50-17) - 25.5L
    Tax amount ((25.5-10)*30%+1.3) - 5.95L
    Add : Education cess @ 3% - 0.1785L
    Tax as per S.140A - 6.1285L
     
  6. Rajesh sethi

    Rajesh sethi New Member

    Please explain why 1.3 is added & will she not get rebate of 3.00 L as standard deduction rebate being a senior citizen as her age is 65 years ??
     
  7. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yeah,it is Rs.1,20,000/-.((500000-300000)*10%+(1000000-500000)*20%))

    Short Term Capital Gain (42.50-17) - 25.5L
    Tax amount ((25.5-10)*30%+1.2) - 5.85L
    Add : Education cess @ 3% - 0.1755L
    Tax as per S.140A - 6.0255L.
     
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