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rajnish kumar   09 June 2019

tax payable on sold residential plot

I purchased a plot of 1000sq feet of 1 lakh in November 2006.

Now I sold it on 7 lakh rupees on 27 march 2017 .
My question is......
Would I hv to pay tax on it's profit of this entire deed of purchasing and selling while it was situated in residential area.?


 2 Replies

Akshay (Advocate)     13 February 2020


Thank you for your question

If you follow this link you will get  your answer


Hope this will help you

Best Regards,

 Akshay Gupta

C. P. CHUGH (Practicing Lawyer)     12 April 2020

Since this is a sale of Capital Asset held for more than 36 months the liability to pay any tax is requried to computed under the Head Long Term Capital Gains subject to provisions of section 54 of the Act.

In case you intend to purchase another residential property out of consideration received from sale of existing residential property no tax shall be payable if investment in new residential property is equal to or greater than the Long Term Capital Gain as computed.

To compute Capital Gains follow the following principal

Take the cost of acqisition at actual as per purchase deed of 2006 as increased by cost of acqusition like stamp duty paid and brokerage paid, if any. considering your acqusition at Rs. 1.00 lakh as mentioned

indexed cost will be 1.00*261/122=216393.40

Sale consideration is 7.00 lakh

LTCG is 483606.60

Capital Gain tax payable is 20% of LTCG i.e. 96721.00 as increased by any surchage and cess payable by you

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