In india there is a chance to a certain amount of tax planning in case of house property in india.
It is such that there is a concept of indexation keeping in mind the devaluation of money. The indexation started from 1981 . The first indecation was set at 100 and the indexation of every year is provided by the government taking in consideration the time value of money.
so anything that was worth 100 in 1981 would be around 644 in 2009.
Now for the tax planning part
supposed a house was brought in 1951 for 10000 and in current year it was sold for around 1 crore 40 lakh in this case.
we will revalue the sold property with effect from back date to such a value that after calcuklation effect with respect to indexation there is no capital gain at all in 2011.
It is such that there is a concept of indexation keeping in mind the devaluation of money. The indexation started from 1981 . The first indecation was set at 100 and the indexation of every year is provided by the government taking in consideration the time value of money.
so anything that was worth 100 in 1981 would be around 644 in 2009.
Now for the tax planning part
supposed a house was brought in 1951 for 10000 and in current year it was sold for around 1 crore 40 lakh in this case.
we will revalue the sold property with effect from back date to such a value that after calcuklation effect with respect to indexation there is no capital gain at all in 2011.
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