Long term capital gain tax

Query: Once the apartment is sold Is the LTCG tax calculated on the stated market rate on the sale deed or on the sale deed price?

Reply: You may take note of S 50C of the Income tax Act 1961. The value determined by the Stamp Valuation Authority will be adopted, if it is more than the consideration disclosed.

Thanx very much for the info.

my mother purchased plot in 2001 for 1 Lakh now she sold it for 50 Lakhs in 2012 for purchasing the flat in 54 Lakhs. Will she have to pay LTCG? i heard that there is some deduction in LTCG (eg expenses incurred in maintaining plot, taxes brokerage etc)

QUERY: my mother purchased plot in 2001 for 1 Lakh now she sold it for 50 Lakhs in 2012 for purchasing the flat in 54 Lakhs. Will she have to pay LTCG? i heard that there is some deduction in LTCG (eg expenses incurred in maintaining plot, taxes brokerage etc)

Reply: If she has purchased a new flat with the sale proceeds of the plot, she may claim exemption under S 54F of the Income Tax Act 1961, if the other conditions prescribed there are satisfied.

Expenses incurred in maintaining the plot, may not qualify for the deduction as the expenses were of revenue nature only. However if there were any improvements, the cost thereof may qualify. 

Taxes: what sort of taxes?

Brokerage paid in connection with the sale of the plot can be claimed as a deuction.

LTCG TO SALE OF LAND OF RS. TWENTY LAKH & EXP. CLAIMED U/S 54F FOR RS. TEN LAKH AND PURCHASE PLOT FOR RS. SEVEN LAKH FOR HOUSE AND CONSTRUCTION STARTED BUT HOUSE CAN'T COMPLITIED WITH IN THREE YEARS.........

Dear sir, taxes means property tax. the plot is open only kuccha makan on it. Will i have to produce reciept for brokerage given

Data: 1. Taxes means property tax. The plot is open - only kuccha makan on it. 

Reply: Property tax, being the tax paid periodically, is not deductible.