Dear Friends and LRE Admin,
I need to know the tx liability that a person generates on making short-term capital gains. For exmaple, as far as I understand a short-term capital gains tax is payable on property sold during the same tax year. So if I purchased a property on 5th July, 2011 and I sell it today, I will incur a capital gain tax laibility. Am I correct? If yes, how much is the tax in percentage terms? Now, if I had purchased the property during the previous tax year, that is on 20th June 2011 and I sell the property today at profit, would I not be lialble for a tax (Does the 1-year short-term complete after passage of 12-months or after passage of tax-year?
Regards,
Thanks in Anticipation of an Enlightening Answer!
Khan replied on Saturday, January 7, 2012 06:24 AM
Mustafa Sahib: Please consult a good tax consultant as this whole issue is very complicated. This way you would have exact information with full responsibility of a consultant. |
Mian Sahib replied on Sunday, January 8, 2012 01:43 PM
I don't exactly when the capital gains tax was reimposed because it was discontinued a few years ago. Whether it is in vogue or not, it is payable only once irrespective of the holding period. Whether you hold the property for one day or one decade, it is the tax that is to be paid by the seller on the profit earned by him or her over the holding period. |
