Taxes & Duties

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Answered on November 09, 2017
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  • Under scenario 1, if you sell your residential flat and invest the capital gain arising therefrom in another residential flat then the provisions of section 54 of Income Tax Act would apply i.e selling of one residential property and buying another residential property within the time limit specified under section 54 of the Income Tax Act will apply and capital gains so arised shall be exempted...
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    Answered on November 09, 2017
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  • Stampy Duty and Registeration fees will depend on the stamp duty provisions of each State. For Maharashtra, the rates are as below:

    a) The stamp duty rate will be 5% of the agreement value or market value (computed as per the ready reckoner rate of the area), whichever is higher

    b) Registration fees will be 1% on the market value or the agreement C72value but restricted to Rs. 30,000.
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    Answered on November 09, 2017
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  • Difference between sale consideration (16 lacs) and indexed purchase cost (5 lacs plus indexation) will be charged as capital gains. Since you are purchasing new residential property of Rs. 32 lacs, the entire capital gains will be exempt u/s. 54 of the Income Tax Act which is available on sale of residential property by investing in new residential property. For ther year under consideration, ...
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    Answered on November 09, 2017
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  • Yes, tax liability will arise on capital gains arising out of difference between sale consideration and purchase consideration.

    As far as rate is concerned, tax will be computed @ 20% plus surcharge (if any) on long term capital asset held for more than 24 months. While tax rate will be 30% plus surcharge (if any) if the asset is a short term capital asset.

    As far as date of purchase is ...
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    Answered on November 09, 2017
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  • You can transfer your share to your wife by executing a gift deed. Further as the property is being gifted to wife (relative), there will be no tax liability under section 56 of the Income Tax Act. However stamp duty and registration charges needs to be paid in this case. If the gift deed is executed, any payment of rent received by your wife in respect of the said property will be clubbed in...
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    Answered on November 09, 2017
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  • If you own both the properties, then the propety held by you in name of your wife in Goregaon is a Deemed Let Out Property (DLOP) in your income by applying clubbing provisions of Income Tax Act. The ideal way to purchase new property is to gift the amount of sale consideration to your wife and then she can purchase the property in her own name then the same can be considered as Self Occcupied ...
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    Answered on November 09, 2017
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  • There would be no capital gain tax if you sell the old residential flat and buy another residential flat as the capital gains can be claimed exempt u/s. 54 of the Income Tax Act. The exemption will be to the extent of investment in the new residential flat or the long term capital gains arising on sale of old flat, whichever is lower. If the investment is lower than the long term capital gains,...
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    Answered on November 09, 2017
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  • In Maharashtra, VAT on sale of underconstructed property brought into effect from June 2006. Hence, builder would be liable to pay VAT on agreement to sale effected in June 2008. There are various methods for arriving at the taxable value of transfer of property in goods during construction. Libality to pay VAT by flat buyer to the builder would be dependent on the contractual arrangement betw...
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    Answered on November 09, 2017
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  • According to Section 56(2) of the Income Tax Act, the gift of flat received by your daughter shall be exempt, as it is a gift received from relative. On registering the gift deed the stamp duty and registration fees needs to be paid. There will be no gift tax on the said transaction.