Taxes for real-estate

LTCG and STCG are to be paid only when the property is sold.

 

Section	Fine points
Sec 2	Holding Less than 36 months – STCG (short term capital gains) Holding more than 36 months – LTCG (long term capital gains)
Sec 48	STCG = Consideration - expenses on transfer - cost of acquisition - cost of improvement LTCG = Consideration - expenses on transfer - INDEXED cost of acquisition - INDEXED cost of improvement
Sec 50C	Selling below Stamp value? When consideration is less than value adopted by stamp duty valuation authority, the value adopted by stamp duty authorization shall be taken as consideration
	LTCG is at 20% STCG is added to income from other sources and taxpayer pays the tax applicable to him/her
Sec 54	Sale of one home and purchase of another home (residential long term asset): Only applicable to individual and HUF New home must be ·         purchased within a period (T-1) to (T+2) years, or ·         constructed within a period (T) to (T+3) years
Sec 54B	Similar to 54, but for agricultural land (again, only long term asset)
Sec 54F	Similar to 54, not for residential property (again, only long term asset)

 

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