Capital gain

This query is : Resolved

Meet Shah (Querist)
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09 July 2013 l
Assessee purchased two land on the following dates:
1 14.02.1995 cost of land: Rs. 38334
2 31.05.2001 cost of land: Rs. 94110

During A.Y. 2013-14 assessee sold the both land( sale valuebreakup is not determinable for each land)
on 26-02-2013 for Rs.9011111/- & he done investment in House in March for Rs.7857000/- Kindly guide how to compute capital gain & exemption U/s 54F For claiming maximum benefit... plz rp

Anand Modi

Anand Modi (Expert)
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09 July 2013 For 94-95 Index Cost is 259 and for 2001-02 Index cost is 426.
hence your cost of acquisition is 38334*852/259 = 126102 + 94110*852/426 = 188220. now 188220+126102 = 314322.

Cost of acq is 314322.
SP = 9011111.
Profit = 86,96,789/-
Now you want to avail benefit of section 54F.
Investment is 7875000/-
the benefit is cost of new house * capital gain / net sale consideration

= 7875000*8696789/9011111
= 7600307.
The amount of exemption available is 7600307/-Rs,

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Meet Shah

Meet Shah (Querist)
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09 July 2013 Thank you sir
can we do like this
for land 1 cost of acq.Rs,116230 and sale value is also Rs.116230(same as COA)

Land : 2 COA Rs.188220 and sale value Rs.8894881(9011111-116230)
and exemption amount (7857000*8706661)/8894881

Rs.8706661 LTGC gain (Rs.8894881-188220)
final amount of exemption is Rs.7690742/-

RPl ASAP

Anand Modi

Anand Modi (Expert)
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09 July 2013 value of the land 1 which should be Stamp Valuation or Sale Value which ever is higher.
Thanks.

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