Calculation of capital gain

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SOHAN DHUWARE (Querist)

03 October 2017 Mr. A had a residential house gifted from uncle in the previous year 2010-11, The Fair market value of which as on 1.4.81 was Rs. 2,70,000. The property purchased by the uncle in 1973 for Rs. 70000, In the year 2015-16 further construction and improvements costed Rs. 25,00,000.00, On 04.07.2017 the house was sold for Rs. 48,00,000.00. Calculate Taxable Income For F.Y. 2015-16 and F.Y. 2016-17

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

03 October 2017 Find out fair market value as on 01-04-2001 as the base year has changed to 2001-2002

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

03 October 2017 Indexed cost of improvement = (272/254)*25=26.77 lacs

calculate of cost of acquisition with fair market value as on 01-04-2001

SOHAN DHUWARE

SOHAN DHUWARE (Querist)

12 October 2017 but construction was completed in F.Y.2015-16 and sold that property in F.Y.16-17 .
Is it short Term Capital Gain ?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

12 October 2017 Construction completed in FY 2015-16 means old property was replaced by newly constructed one? If yes, then you need to calculate short term capital gains for the building and long term capital gains for the land

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