Calculation of long term capital gain and investment to save

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Subhash Chandra Sharma (Querist)
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23 June 2017 Sir, yesterday on 22.6.2017 I enquired about calculation of long term capital gain and suggestions for investments to save income tax.
But my enquiry is still unanswered.
If there is any other formalities to fulfill pl let me know.
Pl help me.
Thank you
Yours
Subhash chandra sharma

Amol S Joglekar

Amol S Joglekar (Expert)
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23 June 2017 what do you want? give some numericals, then it will be easy to answer

Subhash Chandra Sharma

Subhash Chandra Sharma (Querist)
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27 June 2017 sir , I purchased a land measuring 13.5 sq MTR in 1989 from RIICO. jaipur. constructed building basement + g floor in 1993. cost of land Rs. 10880 registration. Rs. 880. other charges Rs. 145 cost of bldg. Rs. 88200 electrification Rs.2000 The above shop sold in June 2017 Rs. 11,50000 I seek help to know what is the long term capital gain and where to invest to save the income tax? how much to invest? the total capital gain amount? or part of it? I shall be thankful for the earlier guidance

Amol S Joglekar

Amol S Joglekar (Expert)
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27 June 2017 You can replace the value as on 01/04/2001, if you wish, for computing the capital gain.You will be required to get this value certified by some Govt Approved Valuer, who charges some fees for the same.
For the time being let us assume the value to be Rs.250,000 as on 01/04/2001
The indexed cost would be 250,000 X 2.72 (the index for 2017-18) = 680000
The capital gain = 11,50,000 - 680,000 =470,000
Within a period of 6 months, you can invest the gain i.e. 470,000 in specified bonds..... (REC...Rural Electrification Corporation OR NHAI....National Highway Authority of India).....
By doing so your capital gain would be exempt....
Feel free to contact for any further query.

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