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Capital gains calculation

CA RaviKumar (Chartered Accountant) (64 Points)

20 March 2017

1. land was purchased in April 2012 for 4,15,000/- 2. house was constructed during FY 2012-13 to FY 15-16. construction cost - 12-13 -19,00,896 13-14 - 3,74,215 14-15 - 5,89,127 15-16 - 13,28,336 construction cost is shown in IT returns. 3. Finally it was sold in Mar 2016 for 50lacs I want to know how capital gains is calculated. whether long term/short term or partly long term and partly short term. Thank u

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2 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 20 March 2017

can any one tell me whether indexation for cost of improvement has to be calculated for each of the 3 years in question on the above ?

CA V KARTHICK (Chartered Accountant in Practice) (506 Points)
Replied 20 March 2017

For the land it would be Long-Term Capital gain as it has been Held for more than 3 Years.

For the House the Date of Completion would taken for determining the period of Holding. Since the Date is in FY 2015-16 it will be a short term Capital Gain.

The Sale Proceeds are to be splitted between Land and House Property and respective captial Gains needs to be calculated.