Income Tax Return Filing for Property Sale

Income Tax Return (ITR) is necessary to file if it is on property sale or sales of shares as these items leads to gain of capital, which will amount to taxable income. There are several ITR forms for filing income tax, however, those who have gained capital, generally file the ITR-2 form for selling property, shares, or mutual funds. Furthermore, read the said article to know more about the ITR filing for Property Sale. Connect with the Bizfoc, who has a great tax consultant and also helps you to file ITR on the property sale.

What is ITR for Property Sale?

In India and other various countries have imposed capital gains tax on the sale of real estate. Report the property sale and find out the capital gains from the required deal. For example, in India, if you sell property and you have capital gains from the sale, you usually have to submit an ITR-2. The Schedule CG must be completed in order to declare your capital gains.

Eligibility Criteria for ITR filing for Sale of Property

If you fulfill the following criteria, then it is mandatory to file the ITR-2 form:

• Anyone who is Indian or a member of the Hindu Undivided Family (HUF).
• Persons on a salary or pension who earn more than Rs 50 lakhs.
• People who make capital gains through the sale of mutual funds, shares, real estate, rental income from several houses, and other sources such as winning the lottery, horse racing, etc.
• If your revenue from agriculture exceeds Rs 5,000
• if you are earning money abroad or possess assets abroad.
• If you hold a directorship in any business, whether domestic or foreign.
• If you own unlisted stock in any domestic or foreign corporation.

Documents Required For ITR filing for Property Sale

View the necessary files needed to submit the ITR-2 form:

• PAN (Permanent Account Number) for Aadhaar Card
• TDS certificates, Form 26AS
• Form 16 if you are an employee
• AIS/TIS statement from the income tax portal
• Challan of the paid taxes
• Details of a bank account
• Details of the initial return (if you are filing a revised return)
• Information pertaining to notices (should you be submitting in response to any notices)

Procedure to File ITR for Property Sales

Following are the steps to file ITR for Property Sales:

1. Step 01. Compute Capital Gains: Ascertain the capital gains resulting from the property's sale. This is accomplished by deducting the purchase price, or cost of acquisition, from the sale price.
2. Step 02. Calculate Your Tax Liability: Determine your tax obligation on the capital gains. Different tax rates apply depending on whether the property was owned for a long time (more than two years) or a short term (less than two years).
3. Step 03. ITR file: Choose the ITR form that corresponds to your income category. In order to obtain property sale details, individuals and Hindu Undivided Families (HUFs) should normally use ITR-2. Complete the appropriate areas pertaining to capital gains resulting from the sale of real estate.
4. Step 04. Claim Exemptions (if Applicable): For the purpose of claiming exemptions under Sections 54, 54F, or 54EC, if you have reinvested the sale proceeds in bonds or another property, please include information about these investments in your ITR.
5. Step 05. Verification and Submission: Once the form is filled, review the details and submit the ITR form online.
6. Step 06. Maintain Documents: Keep copies of all submitted paperwork and the ITR for your records. The Income Tax Department may need certain papers for assessment or verification.

Additional Consideration

1. Ensure file an ITR before the deadline because there can be fines for doing it.
2. Connect to a tax consultant or qualified Chartered accountant, in case you have any queries regarding the process of tax obligations.
3. Review and ensure that you have filled all deductions and applicable income in the ITR form.

Why Choose Bizfoc for ITR Filing?

Bizfoc streamlines your government interactions by handling all paperwork, providing clear guidance on processes, and preemptively addressing your queries with our experienced business advisors. Connect with our experts at Bizfoc for filing Income Tax Return (ITR) of your professional income and avoid heavy penalties on late filing. Our years of experience in Tax filing and tax planning can save your time and money.

FAQs for ITR Filing for Property Sale