Capital gain tax for senior citizen

1] There is no special treatment while taxing capital gain income of  of an senior citizen. except  of getting higher slab of initial exemption as provided by Finance Act 2013  Ie Income up to Rs 2.5 lac is exempted in place of Rs 2 lacs.

2] If funds in the investment has come from yourself alone and name of mother is  added only as joint  owner then entire capital gain will be taxed in your hand and if your mother has contributed her share of investment then it will be taxed to the extent of her investment. If you have taken loan for purpose of purchase of said property  and while computing taxable income in your case, you have claimed  as deduction interest paid on loan  then  property is purchase in your name as per income tax record . If Property is given on rent then if you have included entire rent income in your hand then also capital gain will be taxed in your hand only.

The total capital Gain will be computed as under 

 Indexed value of investment   5,30,000*852/426 =Rs 10,60,000/-

Sale Value              Rs 31,00,000/-

Less cost                Rs 10,60,000/-

Taxable income      Rs 20. 80 lacs.  If you purchase a new house and  entire capital gain ie Rs 20.80 lacs is invested then there will not be any tax as  income is exempted us 54 of I T Act

In case your mother is 50% owner  a so Incme taxble in her hands will be 10.40 llacs and has to pay tax accordingly. 

Thanks

Dear Client,

             For senior citizens aged 60 and above up to  15& deduction/rebate is allowed on short term capital gains. For senior citizens of 80 years and above up to Rs.5,00.00 there is absolutely no tax on any income

Ms.Nirmala P.Rao

Legal Expertt.

Dear Client,

                For senior citizens aged 65 years and above they  can claim exemption on short term capital gains up to 15% tax benefit.. And for citizens of 80 years and above up to Rs.5,00,000 there is absolutely no tax, whether capital Gains tax or otherwise.

Ms.Nirmala P.Rao

Legal Expert

The Congress advised the Congressional Research Service to withdraw the report released regarding tax rates whom authored by Thomas Hungerford, a specialist in public finance at the C.R. S. The study found out that lower tax rates don’t propel economic growth. Source of article: Visit some of our site for more info.

Hi Gane,

You can further reduce your tax burden by tax planing. for details mail me at manish.kumar311@gmail.com