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.
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.
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
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
is Sec-51, does not apply in this transection
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
OM SAI SRI SAI JAI JAI SAI
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