I purchased a 2 grounds of land in 2003 for Rs.4 lakh and i propose to sell 1 ground for Rs.50 lakhs in September. How to calculate Capital Gain Tax? how much i have to pay and how to invest it to save the tax?
ramesh rangarajan (M.Com) (25 Points)
27 July 2015I purchased a 2 grounds of land in 2003 for Rs.4 lakh and i propose to sell 1 ground for Rs.50 lakhs in September. How to calculate Capital Gain Tax? how much i have to pay and how to invest it to save the tax?
Rajagopalakrishnan R
(PARTNER)
(1417 Points)
Replied 01 August 2015
Your capital gains will be calculated as under:
Sale Price : 50,00,000
Less Brokerage if any:
Net Sale Price 50,00,000
Less Cost ( Proporationate)
2,00,000/-
Indexed Cost: (Assuming purchase in 2003-04 FY)
1081/463*200000 = 466954/-
capital Gains : 4533046/-
This will be taxed at 20 % plus cess 3%
ramesh rangarajan
(M.Com)
(25 Points)
Replied 03 August 2015
Sir,
Thanks for the reply, so the capital gains comes to Rs.45,33,046/- for that i have to pay 20% tax Plus 3% cess. Whether to avoid the tax can i invest it in some bonds, Post Office savings or other ways can i invest to avoid the tax. Kindly give your suggestion.
Thanks
R.Ramesh
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"