Q:
Dear Sirs,
Suppose I sell a residential flat in 2013 for Rs 1.62 cr approx. (going market rate) which was purchased in 1985 - 1986 for Rs 2.55 lacs:
1) What is the VAT / Service tax / TDS tax / any other tax me / buyer will have to bear / pay (if any)? It seems some new rule is come into effect from June 01, 2013 regarding service tax. I request clarification.
2) What is the long term capital gain tax I have to pay on sale of the flat?
Likewise, if I invest the proceeds of sale in part or full in purchase of residential flat (new / resale) what will be my tax outgo (VAT / Service tax / TDS tax etc)
Thanks,
Shivakumar R Sharma
email:shivakumar_sharma@yahoo.co.in
VAT and service tax is only paid for under construction apartment. Service Tax is 3.09% of Total Cost(means 12.36% of 25% of total cost) and VAT is 5.5% of total cost = 8.59% of total cost.
For a resale property ine does not have to pay service tax and VAT
Dear Anuj Gupta - Thanks. What about TDS tax? Has some new tax come into effect since June 01, 2013
12th June 2013
Hi your capital gain will be around Rs. 1crore and 60 lakh. The tax you will have to pay on the capital gain will be around Rs. 32 lakh. Please consult a CA and take his advice also.
What about part 1 of the Question?
11th June 2013
Hi , you can save your tax by investing the capital gains in the Real estate and the capital gain bonds.
What about part 1 of the Question?
11th June 2013
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