Things To Keep In Mind If You Are Transferring Sale - PowerPoint PPT Presentation

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Things To Keep In Mind If You Are Transferring Sale

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Is it accurate to say that you are pondering offering your property? All things considered, benefit you really procure through the exchange is assessable. Under the Indian assessment laws, benefits emerging out of exchange Click here for the details… – PowerPoint PPT presentation

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Title: Things To Keep In Mind If You Are Transferring Sale


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Home gt Blogs gt Things To Keep In Mind If You Are
Transferring Sale
Things To Keep In Mind If You Are Transferring
Sale
Mar 2018
Things To Keep In Mind If You Are Transferring
Sale
In Green Homes
Are you thinking about selling your property?
Well, profit you actually earn through the
transaction is taxable. Under the Indian tax
laws, profits arising out of transfer of the
capital asset which other things include property
which is taxable under head capital gains'.
Depending on the period for which asset is held,
gains could be taxed under short-term capital
gains head or long-term capital gains head.
Here, do note that under present norms, long-term
capital gains are taxed at 20 plus surcharge and
the education cess and the short-term gains are
taxed at over 15 plus education cess and
surcharge. If you plan, however, to use proceeds
of the sale of the old housing property in
acquiring another housing property, Section 54 of
Income Tax Act saves from paying capital gains
tax. Under Section 54F of the Act also sell
exempted from paying LTCG tax even if the
saleable property is not residential, and profit
gained so being used to purchasing housing
property. Now, let's Look at what terms and
conditions to avaiL advantages under Section
54- The eligibility Avail the advantages under
the section, the seller has to be the individual
or Hindu Undivided Family. The Hindu Undivided
Family includes all family members including
extended family members. Apart from the Hindus,
the Hindu Undivided Family laws cover Sikhs,
Buddhists, and Jains. The holding period The
property you actually sold should be a housing
asset and should have held by you for long-term.
In case, you hold property only for the
short-term, you won't be eligible to avail of the
advantages. From the assessment year 2018-19, the
holding period in case of the immovable property
is reduced from 36 months to 24 months to qualify
as the long-term capital asset. New asset
purchase Another condition that needs to be
fulfilled to avail the advantages under the
Section to purchase the new property one year
before the sale of old property or within 2 years
the sale of the older property. In case, you plan
to construct the house of your own, the
undertaking must actually be carried out within
these 3 years from the date of the old property
transfer. Compulsory acquisition In the case of
compulsory acquisition, the acquisition period or
the construction will certainly be determined
from the date of receipt of compensation whether
additional or original. The number cap The
effective from the assessment year 2015-16,, the
exemption under the Section 56 can actually be
claimed in respect of the housing property
purchased or the construction in India. If there
is more than a house is constructed or purchased,
the exemption
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under Section 54 will be available for a property
only.
Within boundaries What if the property bought
outside India using sale proceeds of the property
that you held in India? No exemption can be
claimed for a home purchased outside India. The
amount Now, what exactly is the amount of the
exemption provided under Section? Lower of the
following amounts will be exempted Amount
invested in construction/purchase of new housing
property Amount of capital gains arising
from the transfer of residential homes Holding
again What if you are unhappy with the new
property and want to sell it soon enough? In such
a scenario, you will have to let go of the
exemption you claimed. According to the law, the
benefit granted under Section 54 will be
withdrawn if you transfer the new house within a
period of three years from the date of
acquisition. The scheme The Act says that if
capital gains arising on the transfer of home are
not utilized, incomplete or in the part of buying
another house till the date of filing income tax
returns, the advantage of exemption can be
availed by depositing unutilized amount in the
Capital Gains Deposit Account Scheme. The
provision has come into the force with the
enactment of Gains Deposit Accounts Scheme, 1988.
You can definitely approach the branch of public
sector bank to deposit the amount. The new home
can be bought or constructed by withdrawing the
amount from the account within a specified limit
of time of 2 or 3 as the case actually is. The
unused amount In the case, amount lying in the
Capital Gains Account Scheme account is
not-utilized within a specified period, the
unutilized amount for which the exemption is
claimed will be taxed as the income by the way of
longer-term capital gains of the year in which
specified period ends.
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