Capital Gain

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amitabh (Querist)
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14 May 2009 If someone purchase a residential flat at Mumbai for Rs. 14 Lacs in F.Y 2004-05 & wish to sale in F.Y 2009-10 for Rs. 38 Lacs . When flat purcased it was financed by the Bank & still 11 Lacs due to Bank.
Further , this flat showing in two individual file on 50% each basis.
There is also planning to purchase new residential flat in Mumbai.
Sir, now let me know what will be capital gain for both files after considering the Cost Inflation & residential flat status.
I shall be obliged if you elbrote a computation.

chetan soni

chetan soni (Expert)
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14 May 2009 If the property is in the name of both the parties then legally they need to show the capital gains in their individual income tax return.

Computation will be

Sales Consideration XXXXXXX
Less :
Indexed cost of Acquisition XXXXXX

Less:
Share of capital to Mr.ABN XXX
1/2

Exemption u/s 54F XXXXXX

Balance Long term capital gains XXXXXX

Vishal A V

Vishal A V (Expert)
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15 May 2009 Dear Soni,

Beg to differ, Exemption under 54 & not 54 F, please go through both the sections.

Vishal A V

Vishal A V (Expert)
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15 May 2009 Dear Amitabh,

The amount of 11 lakhs is the cost of acquisition, hence it can be reduced from the total sale cosideration, as for the computation details are insufficient, hence, advised to contact your tax consultant.

amitabh

amitabh (Querist)
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15 May 2009 Dear Vishal Sir,

Please let me know, what more computation detail is required

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