23 June 2017
Sir, yesterday on 22.6.2017 I enquired about calculation of long term capital gain and suggestions for investments to save income tax. But my enquiry is still unanswered. If there is any other formalities to fulfill pl let me know. Pl help me. Thank you Yours Subhash chandra sharma
27 June 2017
sir ,
I purchased a land measuring 13.5 sq MTR in 1989 from RIICO. jaipur. constructed building basement + g floor in 1993.
cost of land Rs. 10880
registration. Rs. 880.
other charges Rs. 145
cost of bldg. Rs. 88200
electrification Rs.2000
The above shop sold in June 2017 Rs. 11,50000
I seek help to know what is the long term capital gain
and where to invest to save the income tax?
how much to invest?
the total capital gain amount? or part of it?
I shall be thankful for the earlier guidance
27 June 2017
You can replace the value as on 01/04/2001, if you wish, for computing the capital gain.You will be required to get this value certified by some Govt Approved Valuer, who charges some fees for the same. For the time being let us assume the value to be Rs.250,000 as on 01/04/2001 The indexed cost would be 250,000 X 2.72 (the index for 2017-18) = 680000 The capital gain = 11,50,000 - 680,000 =470,000 Within a period of 6 months, you can invest the gain i.e. 470,000 in specified bonds..... (REC...Rural Electrification Corporation OR NHAI....National Highway Authority of India)..... By doing so your capital gain would be exempt.... Feel free to contact for any further query.
CAclubindia
