Income tax

Guest (Querist) 26 May 2015 This query is : Resolved
Q) my father wants to sell his house which is registerd on his name which he got from self acquired house of my grandfather. does money he get after sale is taxable

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Anirudh (Expert) 26 May 2015
YES but only the capital gain is taxable.

Capital gain is arrived at by deducting from the sale proceeds the indexed cost of acquisition, indexed cost of improvement done if any, and cost of expenditure in selling the property if any.

If you can indicate (i) the year in which the property was purchased/constructed by your grand father, (ii) the cost of purchase/construction, (iii) amount of stamp duty paid at the time of purchase, then I will be able to indicate to you how the indexed cost of acquisition has to be arrived at.

The long term capital gains tax is payable at the rate of 20% of the capital gain.

There are methods by adopting which, the payment of capital gains tax can be avoided.