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Capital gain tax

HARISH VAID (RETIRED) (26 Points)

14 February 2016

I want to sell a property during 2016-17, which was purchased in 2007-2008. Hoe much will the Long Tern Capital Gain Tax and If I invest more then 50% of the sale proceeds in buying a new property then how much will my Capital Gain Tax is reduced. Please Guide me as I want to Save Tax payment, I am a retired person.

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8 Replies

Sathish M (Management Accountant) (40581 Points)
Replied 14 February 2016

Sir, kindly provide the likely figure you are expecting to sell the property and let us know the actual cost you incurred for acquisition of property, details of any improvements made to property, so that your tax liability can be ascertained and also suggest you tax planning.

HARISH VAID (RETIRED) (26 Points)
Replied 15 February 2016

Sir,

I purchased for Rs.22,00,000/= + Rs.3,00,000/= )for Furn & Fixt) + Rs.1,54,000/= for registeration of sale deed. in 2007-08. In 2009-10 I spend Rs.1,00,000/= for repairs and renovation. Now as per Circal rate the sale deed will be for Rs.80,00,000/= and Property Dearler commision with be app Rs.1,00,000/=

Most Probably I will purchase new propery for which sale deed will be app.Rs.60,00,000/= + 1% dealers commision and registrration charges.

I think this is what you require for the calculation of Tax.

thanks

harish vaid

CA CMA CS Ram Pavan Kumar Melam (CA) (6980 Points)
Replied 16 February 2016

Computaion of capital gains
Period of holding: 2007-08 to 2016-17: LTCA
Full Value of consideration	80,00,000
Less: ICOA	(52,06,849)
(26,54,000x1081/551)

Less: Expenses incurred on sale	(1,00,000)
	27,93,151
Less: deduction u/s 54/54F	(27,93,151)
Net capital gain	-