Upgrad LLM

how much tax should be paid to sell property.

Software Engineer

Hi All,

   After seeing this forum and replies by experts I decided to post my question here... let me give little back ground here. I lived past 8 yrs out of country and I moved back to India few months back. I bought a duplex house in 2008 for 40 lacs including registration and I'm planning to sell it now. Current market price is 50 lacs. And I want to convert this amount into FD/MIS so that I can use of Interest money for monthly maintenance. I'm not doing any job now. here are my questions..

1) how much tax do I have to pay on 50 lacs.

2) Is there any IT problems having that much amount in FD?

Much appreciated for your responses.

 

 
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Advocate

Kindly inform the exact date of registration of the house to compute the period of holding. Note that in order to qualify as a Long term capital asset, the period of holding must be more than 36 months.

 
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Software Engineer

Hi Vishal, Thanks for quick reply.. I bought this house in the month of March 2008.

 
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Advocate

As per calculations you have incurred Long term capital loss. Hence there is no tax on the loss.

 
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Advocate

A word of caution: What is the government guideline value as per the Registration Deptt ?

 
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Software Engineer

Hi Vishal, sorry for late reply the government guideline value as per the Registration Dept currently is 20 lacs.

 
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Advocate

In which case you have incurred loss on capital gains of about 10 lakhs

 
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Software Engineer

Thank you Vishal .. not sure how you calculated this amount. I for got to mention that I took loan on 30 lacs and I almost paid 27 lacs... remaining 3 lacs. So what i can understand from your replies is .. I'm safe to sell this property and put them as FD's is that right?

 
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Advocate

Yes

 
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Scientist/Engineer

You can place any amount as FD. But if your interest income exceeds your tax exemption limit you are liable to pay income-tax.

 
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