Question:
I am planning to sell
one of my house, which I had built 4 years ago, to a firm. What would be the
tax implications...? - Mr. Ravinder Singh
Answer by Mr.
Suresh Surana, RSM Astute Consulting Group
The transfer of a
house (flat), it being a capital asset, is subject to capital gains tax in the
hands of the transferor.
As the house has been
held by you for more than 36 months (3 years), the gain on its transfer will be
treated as long-term capital gain (LTCG), taxable at 20 % plus applicable
surcharge & education cess.
 |
| Suresh Surana, RSM Astute Consulting Group |
Further, the benefit
of indexation will be available. Under section 50C, if the sale consideration
is less than the stamp duty value of the house, then the stamp duty value will
be considered as full value of consideration for the purpose of calculating
capital gain.
Reinvestment benefit
under Section 54 can be availed.
Recently, the Union
Finance Bill 2013 proposes to impose an obligation on the buyer of an immovable
property to pay tax at 1 per cent where the total amount of consideration is
Rs. 50 lakh or / more.
Accordingly, the firm
will be required to pay tax either at the time of making the payment or / credit, whichever is earlier, at 1 per cent.
Contact:
RSM Astute Consulting Group
Web site: http://www.astuteconsulting.com
Email: emails@astuteconsulting.com
Tel: 91-22 6696 0644, 91-22 2287 5770
Fax: 91-22 2820 5685, 91-22 2287 5771
Contact:
RSM Astute Consulting Group
Web site: http://www.astuteconsulting.com
Email: emails@astuteconsulting.com
Tel: 91-22 6696 0644, 91-22 2287 5770
Fax: 91-22 2820 5685, 91-22 2287 5771
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