Capital gains of sale of property
Pavan Mundra (Head Accounts) (43 Points)
08 June 2016Pavan Mundra (Head Accounts) (43 Points)
08 June 2016
Senu Reddy
(ca final)
(291 Points)
Replied 08 June 2016
Based on calculations
YOUR LONG TERM CAPITAL GAIN = 29,85,000/-
Long term capital gain Tax = 2985000*20% = Rs 5,97,000/-
Section 54:
In case the the immovable property sold / transferred is a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on Long Term Capital Gain is available on the amount of investment in the new asset to the extent of the capital gains. It may be noted that the amount of capital gains not appropriated towards purchase or construction of a new house within 3 years may be deposited in the Capital Gains Account Scheme of a public sector bank before the due date of filing of Income Tax Return. This amount should subsequently be used for purchase or construction of house.
Section 54F:
When the asset transferred is a long term capital asset other than a residential house, and if out of the consideration, investment in purchase or construction of a residential house is made within the specified time as in sec. 54, then exemption from the capital gains will be available as:
It may be noted that the Finance Act has provided that with effect from assessment year 2001-2002, the above exemption shall not be available if assessee owns more than one residential house, other than new asset, on the date of transfer. Investment in the Capital Gains Account Scheme may be made as in Sec.54.
Pavan Mundra
(Head Accounts)
(43 Points)
Replied 08 June 2016
Sir should I dont get benefit of Cost on Indexation.
Pavan Mundra
(Head Accounts)
(43 Points)
Replied 08 June 2016
Particulars | Amount |
Flat Price | 1,800,000 |
Stamp Duty | 90,000 |
Society Trs. | 15,000 |
Renovation | 200,000 |
Total Cost | 2,105,000 |
Sale value | 5,000,000 |
Profit | 2,895,000 |
Without Indexation |
And your Profit is more if you consider Indextion. Please help me out I got confused.
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)