Capital Gain on sale of resident house

The difference of indexed cost of acquisition and sale price is taxable as Long term capital @ 20%. In absence of details of the date and sale of the property, it is not possible to calculate the amount of capital gains & tax thereon.

It does not matter whether it has been invested in your prop business or not if it has been invested with the 6 months for your date of sale in capital gains scheme mention under section 54EC of the i.t. act, 1961. as per your query u have not invetsed under the above mentioned scheme the hole difference amount is taxable under the head income form capital gains as per the i.t. act, 1961.

hi,

As u have sold your residential house , for the purpose of claiming exemption under Income Tax Law you are required to purchase another residential house within a period of 2 years OR you may invest the sale proceeds into the Bonds as specified u/s 54EC of the I.T.Act(if there is any delay on account of any reason then till the time of purchase of new house or investment in Bonds, deposit the amount in any Nationalized Bank under Capital Gain Scheme Account). Mere investment of surplus money in your business does not escape from the tax liability. hence, you are required to pay Long Term Capital Gain @ 20%.

hi, u replied more correctly to some extent. rest of the people have done blunder. 

Mr Khan. Request you not to use such harsh words. It is forum section and members post their views as per the topic posted and their understanding of the subject.

The querist has intimated that he has invested sale consideration in business, so any suggestion for saving tax does not arise. The only answer to his quey is that yes this income will be added to his total income but tax shall be calculated on this Long term capital gain at special rate of  @20.60% in addition to tax calculated normally on the balance income (after reducing capital gain from the total income). Of course he will be entitled for relief of maximum income on which tax is not chargeable if he does not have ay other source of income.

No exemption u/s 80C is available in respect of Long Term Capital Gain.

Mr Khan ,

above clarifications are causing some confusion.The Capital tax once given,do you also have to give income tax on the remaining amount.