What is Capital Gains when you Sell a Property in Mumbai

Capital gains are the profits that you make when you sell a property for more than what you paid for it. In Mumbai, capital gains are subject to taxation under the Income Tax Act, 1961. The tax rate and amount of capital gains tax that you may be liable to pay will depend on a number of factors, including the type of property sold, the length of time you owned the property, and the purchase price and sale price of the property.

Here's a brief overview of how capital gains tax is calculated when you sell a property in Mumbai:

Long-term capital gains: If you sell a property that you have owned for more than 2 years, you will be liable to pay long-term capital gains tax. The current long-term capital gains tax rate is 20%, plus applicable surcharge and cess.
Short-term capital gains: If you sell a property that you have owned for less than 2 years, you will be liable to pay short-term capital gains tax. The current short-term capital gains tax rate is 30%, plus applicable surcharge and cess.
Cost of acquisition: The cost of acquisition is the amount you paid for the property when you purchased it. This includes the purchase price, as well as any additional expenses incurred in acquiring the property, such as registration fees, legal fees, and stamp duty.
Cost of improvement: The cost of improvement is the amount you spent on improving the property after you purchased it. This includes expenses related to renovations, repairs, and other improvements that you made to the property.
Indexed cost of acquisition: In order to account for inflation, the cost of acquisition and cost of improvement can be indexed to reflect the value of the property at the time of sale.

The calculation of capital gains tax can be quite complex, and it's important to consult with a qualified tax professional or accountant for guidance.

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

Residential Leasing

Commercial Leasing

Residential Home Buying

Commercial Property Buying

Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

Drafting of the Leave and License Agreements
MOU for Buying/Selling Properties
Drafting Agreement for Sale
Gift Deeds
Computing of Capital Gains with current ready reckoner values
Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

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What is Capital Gains when you Sell a Property in Mumbai