Legal Question in Real Estate Law in India

I brought a flat in 1966 in Mumbai.The building was demolished and rebuild in 2006. Now I want to sell my flat and give an equal share to my kids. I would like to know about capital gain on my flat. Is the remaining money after the capital gain money taxable. Can I invest in more than one property? What is infrastructure bonds? Can u suggest a good property law advisor in mumbai who will not charge an ENORMOUS fees as I am a retired man?...Thankyou.


Asked on 6/12/11, 4:29 am

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Capital Gains are computed by deducting indexed cost and expenses incidental to sale from the sale price of capital asset.

As per present income tax law, one can invest upto Rs.50,00,000/- in Capital Gain Bonds, which has lock-in period of 3 years and yield about 6% pa interest payable yearly.

As per present income tax law, one can also invest in a residential house.

If you opt to pay capital gain tax, then remaining money is not taxable and you may gift the same to your children in whatever proportion you deem fit.

Read more
Answered on 6/13/11, 3:35 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in India