Tax on Selling shop

[Asked by Guest]

Hi,

I have sold one shop in current financial year for around 40 lacks at govt rate which was bought at around 5 lacks 7-9 years back.

So how much i have to pay tax for this and how can use that money efficiently and can that money be used in building or other expenses.

[DR.MARIAPPAN GOVINDARAJAN]

You have to pay income tax on capital gains considering the index for capital gains. It is advised a tax consultant may be consulted in this regard.

AI Summary

Capital gains tax: sale of commercial property is taxable, calculated with indexation-seek professional tax advice.
Sale of a commercial shop generates a taxable capital gain that must be calculated for income tax purposes using indexation to adjust the acquisition cost; professional tax advice is recommended to determine the tax payable and advise on efficient use of the proceeds.