Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale
5 years, 7 months ago

Real estate investment: Homebuyer must look into taxation aspects of rental income, gains from property sale

Firstpost  

An individual who has earned long-term capital gains on the sale of real estate can claim an exemption under Section 54 if he reinvests the gain in another property. Similarly, if a taxpayer sells the property after 24 months, then the income will be treated as long-term capital gains; this gain is taxed at 20 percent after indexation. Exemption available on sale of real estate under Section 54 An individual who has earned long-term capital gains on the sale of real estate can claim an exemption under Section 54 if he reinvests the gain in another property. The amount of exemption allowed is the lowest of long-term capital gains earned and the amount invested in the new property.

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History of this topic

How you can claim deductions and save on taxes from rental income
4 weeks, 1 day ago

How you can claim deductions and save on taxes from rental income

Live Mint  

Rent can be an additional source of income for salaried individuals who have invested in property. The balance ₹46,000 loss can either be set off against other income heads in the same financial year or carried forward to be set off against rental income in subsequent years. But you can either set off the balance loss against other income in …

How are non-residents taxed on profits on the sale of real estate?
4 weeks, 2 days ago

How are non-residents taxed on profits on the sale of real estate?

Live Mint  

I am a NRI and PIO. Profits on the sale or transfer of land and buildings, whether residential or commercial, are treated as long-term capital gains if sold after 24 months. The long-term capital gains are taxed at a flat rate of 12.50% without any indexation benefits, as the budget presented on 23 July 2024 has withdrawn the indexation benefits. …

Income Tax Budget 2024: Now you can’t show rental income under ’gains of business’ head to evade tax. Why it matters
5 months, 2 weeks ago

Income Tax Budget 2024: Now you can’t show rental income under ’gains of business’ head to evade tax. Why it matters

Live Mint  

Your income from letting out of a house or part of your house will henceforth not be charged under the head ‘profits and gains of business or profession’. It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or …

Income Tax Returns, Budget 2024: Taxpayers must show home rent income under ‘income from house property’
5 months, 2 weeks ago

Income Tax Returns, Budget 2024: Taxpayers must show home rent income under ‘income from house property’

The Hindu  

All rental income of individual taxpayers from residential properties will be charged under the head 'income from house property' and not as income from business or profession, according to the Budget document. "It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head 'profits and …

What is the taxation on rental income?
1 year, 4 months ago

What is the taxation on rental income?

Live Mint  

I want to rent out my 1-bhk house and plan to move into a 2-bhk apartment taken on a higher rent. —Name withheld on request The taxability of income earned by you from let-out residential house property and the tax deductions available towards rent paid, are dealt under separate provisions, under the Indian income-tax laws. The following exemption/ deduction may …

Union Budget 2023-24: Why favourable policies for realty sector can assist in growth, economic sustainability
1 year, 11 months ago

Union Budget 2023-24: Why favourable policies for realty sector can assist in growth, economic sustainability

Firstpost  

In a post-pandemic arena, unlike many other sectors, the Real Estate sector has rebounded strongly. Direct Tax relief measures Simply put, the expectations of home buyers can be categorised into three main buckets – enhancement of personal tax deductions, rationalisation of capital gains tax regime, and introduction of incentives. Given the trend in rising prices in the RE sector, due …

Income tax: This is how you can you seek exemption from long term capital gains
2 years, 5 months ago

Income tax: This is how you can you seek exemption from long term capital gains

Live Mint  

As the deadline to file income looms closer on July 31, taxpayers must be busy arranging the essential documents to be able to meet the deadline. For instance, the sale of immovable assets comes under long term capital gains if sold after two years and the time period reduces to one year in case of securities and mutual funds. To …

Understanding capital gains tax exemption under Section 54
2 years, 7 months ago

Understanding capital gains tax exemption under Section 54

Business Standard  

The profit earned from the sale of a house is taxed as a capital gain. If in this case, the seller was liable to pay income tax on capital gains arising from the sale of the old house, then it would impose a hardship on him. Under Section 54 of the Income Tax Act, a seller can av­ail of tax …

These simple steps will help you escape long-term capital gain tax on property
2 years, 7 months ago

These simple steps will help you escape long-term capital gain tax on property

Live Mint  

When you sell an asset be it equity or a property or debt funds, the profit accruing from it is labelled as capital gain. There are provisions in the Act that classifies these gains as long-term capital gain depending on how long the investors had continued holding these assets. The profits earned from selling any of these are termed as …

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