Hi,
I've sold my house and place, which was gifted from my parents.
My parents bought the land in 1986 for RS 4500 And they construed a home on it, cost for it is around 3 laks (No paper proof of permission and bills for the home)
On September 2016, they gifted it to me (Gift regisration of RS 6 lak with My name)
I've sold it on December 2017 for 23 laks (Registartion of 23 laks)
1. Is this profit/gain considered as Long term or shor term gain ?
2. How much gain that i got as per the above numbers
3. Now we're construting a new home not with any builder (With local mestri from my home town)
For that we've bought a land of RS 540000, my question here is how i suppose to show bills for constructing a home
for cement, iron and sand we've bills but for other like labour and mestri charges(Its nearly 6 laks). How to submit these bills?
4. Apart form land amount(540000) for how much amount i need to submit the bills to avoild the full tax?
Please please help me on this.
Thanks
Saikiran
3 Answers
Dear Saikiran,
If the property is held for more than 36 months(from FY 217-18, it is 24 months) from the acquisition date, then the resulting gains, if any, are termed as long-term capital gains (LTCG).
In case of gifted property, the period of holding is reckoned from the date of purchase of property by the owner who has actually acquired the property.
As your parents have acquired it in 1986, it is Long term capital gains in your case (in you hand).
2 - Regarding calculations, you may kindly consult a Chartered Accountant.
3 - You may ask your Mesthri to provide some bills (else you may also have a formal construction cost estimate agreement with your Mesthri). Kindly note that there is no need to submit any bills to the IT dept when filing your income tax return, but these can be used as proof if required in future.
Kindly read :
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
Thank you so much for a quick response Sreekanth. One more questions, So as per you answer no need to submit any bills is there any specific documents that i need to submit while filling IT ??
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