Capital gain

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2015 Respected Sir/Madam,

During the F.y. 2014-15 i have sold one shop on which long term capital gain arises, if i do indexation then my capital gain comes to Rs. 18 lac & tax @ 20% Rs. 3,60,000 , & without indexation my capital gain comes to 20 lacs & tax @10% Rs. 2,00,000. So i am opting for not indexation of cost & pay tax Rs. 2,00,000.
Now, my query is i have also done improvement in property, can i take indexation benefit of indexed cost of improvement or only the actual cost of improvement is available...??

thanks & Regards.

Saravana Perumal Aiyathurai

Saravana Perumal Aiyathurai (Expert)
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04 March 2015 For improvement also you can avail the benefit of indexation and Please provide complete details to answer the query.

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2015 For,
Saravana p. Aiyathurai

Complete details are as follows:-

purchase year f.y 2010-11,
purchase cost 7.5 lakh
indexed purchase cost= 1080169.

sale value = 27.5 lakh
sale year-- f.y 2014-15

case 1:- when indexation cost benefit is taken.
capital gain=1669831 & tax= 333966 rs.

case 2:- when indexation not taken.
capital gain=20 lakh & tax= 2 lakh

Now, in the f.year 2010-11 , i have spent amt on inprovement of shop rs 2 lakh.

& my query is as i have spent amt on improvement of shop rs 2 lac , can i take indexation benefit of improvement along with non-indexation of cost or i have to indexed both cost & improvement simultaneously..??