My uncle purchased one plot in 1989 in ~ Rs 20000. Now he is not earning anything and has to sell the plot. He will be getting ~Rs 300000 (3 lacs) by selling the plot. Please let me if he has to pay tax at 20.6% for the long term capital gains or lesser tax he is having zero earning. Regards, Sharad
1 Answers
Long term gains would be around 2 lacs with indexation benefit. He need not to pay any income tax till non-taxable range (1.8 lacs for FY 2011-12, 2 lacs for FY 2012-13). Any amount above this would be taxable at 20.6%.
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