I sold a house in Aug 2007 and kept amount in the capital gain FD. Which I broken in July 2010 (before completing three years) Now what will happen? 1- How to calculate income tax on the amount I earned from Capital gain wich was deposited in capital gain FD for 2years and 11 months? Tax at what rate? 2- Should I have to pay tax since I sold the house? 3- Will there any interest to pay? Thanx K Siddiqui
long term capital incom tax calculation if fails to purchase a house with in three years
seema
1
Viewed 2125
1 Answers
As you did not buy another house from the capital gain amount, there will be income tax payable @ 20% on capital gains (computed with indexation benefit).
Interest on this capital gain account will be added to your taxable income and will be taxed per slab rate.
Related
I am not sure what you meant by capital gain FD. There is no such scheme. Either there are capital gain account scheme or capital gain tax saving bonds. And how you are able to break it before three years as it needs assessing officer letter to withdraw money.