Hi, My uncle is 80 Years old, He is selling his house for 40 Lakhs(all in white), What would be the tax he needs to pay for the 40 Lakhs,

His monthly income at present in
Pension - 23,000 INR - PM
Bank FD Interest - 28,000 INR - PM

Kindly inform
For the purpose of computing capital gains, what is relevant is the cost of acquisition. In your uncle's case, the cost to be taken into consideration for the capital gains would be the purchase price paid for the property+ stamp duty + registration fee + brokerage (if any) + legal fees (if any).

Kindly check a note prepared by the I-T dept to know capital gains tax http://www.incometaxindia.gov.in/Tutorials/15-%20LTCG.pdf

You can refer to the tax calculators available on Income Tax Department's website -

http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

You can use other calculator on the I-T Dept website to calculate tax liability of your uncle as well.
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Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS

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