Long Term Capital Gain

Hello, My Mother is 61 and last Oct (2010) she sold her apartment for 17 Lakhs. We did a rough math and see that her LTCG would be to the tune of about 10 Lakhs. At the moment she is undecided about a future investment. Given that she has no other income besides the sale of the house, could you please advise as to

  1. What would be her tax liability
  2. By when should she pay her taxes (Please note she has just applied for her PAN card and has never paid any tax before)

  3. Would she have to pay 20% on the 10 Lakhs or would there be a different calculation based on the Tax Threshold and her age

  4. Is there a way to pay the LTCG Tax without a PAN
  5. What should she do to make the most of her sale



asked Mar 29 '11 at 00:37 by Viji 1111

It would not be possible to compute exact capital gain amount and income tax liability without knowing below details:
1.Purchase Year
2.Purchase Cost

Income tax on capital gains will have to be paid before 31st March, 2011. After which it can be paid before 31st July, 2011 (before return filing), but an extra interest amount for late payment has also to be deposited.

Income tax is 20% on capital gains (after indexation computations). Age and tax slabs does not matter here.

Tax cannot be paid without PAN card.

To save income tax, She can invest the capital gain amount into again another residential property or she can invest the gains into capital gain bonds.

answered Mar 29 '11 at 14:27 by pankaj 5.2k320


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Asked: Mar 29 '11 at 00:37

Seen: 911 times

Last updated: Mar 29 '11 at 14:27