How to save capital gain tax

1. Long term capital of Rs.17,32,790 and tax would be Rs.2,12,220. Assuming both have invested equal amount in the plot and capital gain is assessable equally in the hands of both

2. Farm income more than Rs.5000 would be clubbed for rate purposes.

3. Before 31.08.2019, it should be deposited in capital gain account scheme to avail exemption and time period for investment purpose. You can still open the account and claim exemption citing floods.

4. No

5. If the taxable income is less than 5,00,000 it is Rs.1,000 otherwise Rs.5,000. It is late fees.

1. Your capital gain would be 21 lakh less 3.67 lakh i.e. indexed cost of half of 2.9 lakh plus 30k stamp duty. If you have proper bill of development expense you can get additional 68k deduction. Your capital gain would be around 17 lakh and tax on same would be 3.4 lakh.

2. I don't see any possibility of saving tax as you haven't deposited any amount in capital gain account scheme before 31.8.19 i.e. due date for filing return of income.

3. Penalty would be around Rs. 5000 each.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hello Sir,

Here are the replies your questions:

1. Computation of Capital Gain 

Sales Consideration- 21,00,000

Less: Indexed Cost of Aquisition- 4,36,065

(( 380000/2)*280/122)

Long Term Capital Gain - 16,63,935

As per Income Tax Act, Long term capital gain on immovable property is taxable at 20 percent.

* Both of will divide the above capital gain in the ratio as decided. 

2. In case of Long Term Capital Gain- benefit of exemption of 3,00,000 as allowed to senior citizens are not allowed. Hence capital is taxable at flat rate of 20 percent. 

3. If the property is sold last year then capital gain will be computed in that financial year only. Hence tax will be paid in FY 2018-19 and now there is no possible option as visible from the deatils provided by you as of now. (As you already have a house property than exemption cannot be claimed for annother house property)

4. No. 

5. If you will file the ITR for FY 2018-19 before 31st December than in that case : penalty is RS. 5000. 

Thanks and Regards

Divya Chugh

Hello,

1. The capital gain would be around Rs. 17.30 Lakhs and tax would be at flat 20%.

2. Tax would be payable after BEL Limit of Rs. 3 Lakhs.

3. Since the due date for deposit in CG savings account is over, there isn't any possibility to save tax on capital gain now.

4. No.

5. Upto Rs. 5000.

I hope that this answer satisfies your requirements.

Regards,

CA Hunny Badlani

Hi

Considering you both have equal ownership in the land sold and you have sufficient proofs of payment of development fees:

1. Approx 1.15 lacs each plus late fees
2. No, all due dates have expired.
3. No
4. Rs. 5000 each.

Dear Sir,

Hope you are doing well !!

1. You need to pay the capital gain taxes of Rs ~1.15 with applicable interest.

2. No, the time limits have been expired.

3.No.

4. INR 5000 each.

Hello Sir,

1.  You will be required to pay the capital gain tax @20% plus applicable surcharge and cess on the same. Assuming you both are having equal shares in the property so your capital gain tax liability would be around Rs. 1.15 lakh.

2.No, the all due dates have been expired.

3. No.

4. Penalty would be Rs 5000 each.