'MF Gain: 2.5L. How Much Tax To Pay?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.

Anonymous: I bought a flat in 2022 worth 1.35cr and selling it for 2.4cr in 2025 and reinvesting the profit made which is 1.1cr in buying another independent house worth 1.8cr. will i have to pay the tax on capital gains?

You are entitled to avail exemption for your investment in Residential house property & as per data made available there should not be any LTCG liability in this case. Kindly ensure that, new property is registered in your favour within 2 years from the date of Sale deed of your sold property.

Anonymous: My father started a business with his brother in XYZ name and got a Gala in Apmc in the same name where they shared 50-50% share in both business n property after my father's death i was admitted in as a partner with same ratio after few years my uncle passed in his share to his son so as of now i and my cousin brother are partner the property was purchased 296200 in the year 1995 along with registration so 148100 was the share of each and now i want to leave the partnership and also to let go of my share in the premises for which my existing partner will pay me 3750000 on or before 31.3.2025.
I wanted to know how much capital gain tax will be for me if i do not invest secondly can i invest in residential property I would appreciate if guided Thanking you in anticipation?

Considering receipt of Rs 37,50,000 as Sale of your share in property/ premises, it would be LTCG in this case.

• Amount of LTCG without Indexation is Rs 36,02,000 (Sale Rs 37,50,000 Less Cost Rs 148,100) Tax @ 12.50% is Rs 4.50 lakh approx.
• Amount of LTCG with Indexation is Rs.32.12 lakh (Sale Rs 37,50,000 Less Cost Rs 5,37 lakh {Index 100/363}). Tax @ 20.00% is Rs 6.40 lakh approx.
• You may go for the first option & plan your tax liability. You can invest in residential property to save LTCG tax.
• Other option to save tax is to purchase Capital Gain bonds. However, investment in Real Estate is always better than other investment.

Vilas: My salary income will be Rs 12 lakh and expect a long term capital gain of Rs 2.5 lakh from mutual funds. What will be my income tax liability? The year is 2024-25 FY

Your Tax under Old regime would be around Rs 1,80,000 & under New Tax Regime Rs 88,000 for the F/Y 2024-25.

Pundarikakshan: Is it mandatory to invest the sale proceeds of old property to purchase new property to claim long term capital loss on sale of property?

It is not mandatory BUT it is a requirement to avail exemption u/s 54, to invest your LTCG to save LTCG tax. Alternatively, you may also purchase Capital Gain Bonds, for the same purpose.

Priya: I would be selling a property at around 4.80 cr. How can I save LTCG? if I were to use indexation I need to get guide line value of property in April 2001 and pay 20 % of reduced value? How can I save OVERALL LTCG?

• Index value is 100 as on 01.04.2001.

• You may calculate tax under both options (with Indexation - 20.00% or without Indexation 12.50%) & decide the option, beneficial to you.

You may plan your Tax payment, by investing LTCG, either in any Residential Property or in Capital Gain Bonds.

• You can ask rediffGURU T S Khurana your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.