Property tax

I sold the only residential, over 2 decades old prpoperty, I owned.
I got its valuation done by a govt. approved valuer. So I have current value after indexation.
My question no one: Can I reduce out of capital gains
no 1: the brokerage I paid to sell the property, and
no 2 the fees paid for getting the property evaluated for calculating income tax.
My question no two: I am a senior citizen. Can I pay the tax on this capital gains at the time of filing returns, without attracting any penalties (like I pay income tax )?
Thanks in anticipation. more

Helpful Tax, Investments and Retirement Oct 28

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Kanwarjit Singh

No deductions will be allowed. The buyer should have deducted 1 % of of sale proceeds. In case your tax liability exceeds TDS or no TDS is deducted and some tax is due, not paying advance tax will automatically result in charge of interest. You can pay with the return this amount and no penalty is levied. Kanwarjit S IRS retd. On 28 Oct 2018 15:40, Pawan Gupta wrote: more

Oct 30

Pawan Gupta

Thanks for the response. 1% TDS has already been paid. As I understand deduction of expenditure for sale is allowed from capital gains.
Moreover, as a a senior citizen income tax payment does not attract interest, even if tax is paid with filing of return in say July of the assassment year. This is normally I do. But, I am not sure in the case of tax payment time from profit frim sale of property. more

Oct 30

Ujwala Arya

you can deduct all the charges and expenses incurred from the time of purchased till you sold the property . your ca would be the best person to advise you more

Oct 29

Pawan Gupta

Thanks, for the information. It is helpful.
I have no CA. I pay taxes and file return myself. Thus I sought this information. more

Oct 29

Pawan Gupta

True. I have done calculation accordingly. 1%TDS has been deposited by the buyer as my tax. After getting the current cost (ie sale cost - brokerage - current valuation cost of the property paid) after indexation has been arrived at. Even after investing most of the profit as capital gains bond, I habe to pay a small amount as tax. Like I pay incoe tax in July, at the time of filing ITR, I will pay this tax also. With information above in the comment now I feel will not attract penalty. Thank you Mr Mohit Pandey and Mr Ramesh Mittal Ji. I feel more confident after getting your comments. more

Oct 28

MOHIT PANDE

Any incidental expenses incurred for selling the property are allowed to be deducted from Sale amount as per IT Act. In your case expenses towards brokerage and valuation of property can be deducted. Tax on capital gain can be paid by you as self assessment tax at the time of filling your tax return. However if invest the capital gain amount as provided under IT Act you can avoid paying the capital gains tax. more

Oct 28

Ramesh Mital

Sir, the position has been fully explained by Shri Chaturvedi fully. Briefly, Capital gains refers to Total Sale Receipt minus Total Cost of Property. Total cost of the property refers to current value after indexation till date of sale plus other expenditure incurred towards sale of property. Brokerage and fees paid for valuation of property are considered as expenditure for sale of property and may be accounted for in calculation of total cost of property. As per current income tax rules buyer, after deducting 1 percent from the sale proceeds, is to deposit the said amount on behalf of the seller in the PAN account of seller. Proper accounting of total tax including tax on capital gains payable and paid during the year under reference is done while filing ITR. Regards. more

Oct 28

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