Tax on Sale Proceeds of House

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  1. Savitri

    Savitri New Member

    I have sold a duplex house for 68 lakhs in January 2015 which I had bought for 58 lakhs in August 2008. I would like to know whether I will need to pay income tax for it? How best Can I use the money? It is lying in my savings account. I am interested in investing the money for retirement plan with at least Rs. 1 lakh income per month. Please advise.
  2. Parul_Gupta

    Parul_Gupta Active Member

    As the property has been held by you for more than 3 years, therefore this would be classified as a long term capital asset and you can claim benefit of Indexation.

    Indexed Cost of Acquisition = 58 Lakhs * 1024/582 = 1.02 Crore
    Sale Price - 68 Lakhs

    As the Indexed Cost of Acquisition is more than the Sale Price, therefore No Tax would be levied in this case.
  3. Savitri

    Savitri New Member

    Thank you. I was also looking for an advise regarding best way to invest this money in a retirement plan which will give me at leat Rs. 1 lakh per month. I can sure add more to this money and enter the plan.
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