Adavance against propertry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 Dear Sir,

My Client has received Rs. 15,00000/- as bayana for his two Floor Ground + First Floor Total Sale Consideration Rs 13500000/- which is for fitted by my client.
in 1998 my client has purchased this property in Rs. 200000/- later on he spent Rs. 600000/- on Construction in 2008.
How Can i Compute this amount for calculation of Income tax.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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12 October 2012 It is long term capital gain. Total capital gain is Sales consideration - Indexation cost of purchase.
In your case indexation cost should be consider based on indexation rate for F.Y.1998-1999(assumed purchase during this financial year) on Rs.200000. Thus indexation rate for Rs.600000 should be consider for F.Y.2008-09(construction during this year). Thus your indexation cost of purchase is Rs.13,63,820[(200000*852/351+(600000*852/582). Thus your long term capital gain is Rs.1,21,36,180(13500000-1363820) on this amount you have to pay long term capital gain tax @20%+3% cess i.e Rs.25,00,053.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2012 Amt of Rs. 1500000/- forfiet by my client and sale agreement is cancelled, my client is still live in this house.

is Sec-51, does not apply in this transection

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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12 October 2012 Then Rs.15 lacs will also treated as sale consideration in case he sold it further i.e in the same financial year. Otherwise it would be treat as other income and pay tax according to your tax slab rate.

OM SAI SRI SAI JAI JAI SAI

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