Charanjit Sahni (Manager) (25 Points)
23 May 2018Please calculate Capital Gain for a Property purchased in May 1990 For Rs 400000/00( Rs 4 Lac) & Sold in June 2017 for Rs. 3,00,00,000/00 (Rs 3 Crore ).......
Please clarify the procedure to follow...
Thanx.
Sarath Rajendran
(Nil)
(2791 Points)
Replied 23 May 2018
1. Calculate indexed cost of acqusition
Formula for computing indexed cost =(Index for the year of sale/ Index in the year of acquisition) x cost.
2. Deduct this (fig.1) from Sale consideration
You will get the capital Gain
rama krishnan
(12234 Points)
Replied 23 May 2018
Charanjit Sahni
(Manager)
(25 Points)
Replied 23 May 2018
TaxLab
(Article Assistance )
(137 Points)
Replied 23 May 2018
Prosess to calculate Capital Gain is revised from 01/04/2017.
as per new changes base year is change from 1981 to 2001 so you have to find the FMV of property as on 01/04/2017. CII for 2017-18 is 272.
Capital Gain = Sale considration - ( Indexed Cost of acquection + Indexed Cost of Improvement)
Indexed Cost of acquection = FMV as on 01/04/2017 X 272 / 100
Indexed Cost of Improvement = Cost X 272 / CII of that year.
In your case you have to find FMV as on 01/04/2001 first. you can find FMV as fellow.
FMV = Circle Rate of that area as on 01/04/2001 X Arae of that property.
rama krishnan
(12234 Points)
Replied 23 May 2018
CAclubindia
