CAPITAL GAIN

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Appu Philiph (Querist)
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23 July 2016 mr. A purchase a land in 1997 for rs 500000 and sale in 2016 for 50000000 . agreement date 1997 april as per agreement amount paid in intallements 1-8-97 1-10-97 1-12-97 1-1-98 1-2-98 paid in equale installments ..how to compute capital gain..and how to compute indexation plese explain with section ?

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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23 July 2016 All the payments fall in FY 1997-98 as such there is no issue. All payment made in same year as such Cost Inflation Index for (331) will be taken. Indexed Cost = 500000/331x1125 (assuming sale made after April 16 i.e. in FY 2016-17) = Rs 1699396 & Capital Gain Rs 4.83 Crores. Please also check whether the same is Agricultural Land situated in Rural area.

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Appu Philiph

Appu Philiph (Querist)
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26 July 2016 If payments not fall in the 1 financial year how to calculate cost of indexation ?

CA AJAY KUMAR AGRAWAL

CA AJAY KUMAR AGRAWAL (Expert)
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26 July 2016 You can take Cost Inflation Index (of relevant FY) & apply the same on amount received during that FY. Formula is given above.

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Appu Philiph

Appu Philiph (Querist)
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26 July 2016 IF AGRREMENT OF SALE ON 1996 AND SALE DEED ON 2002 AND FULL AMOUNT PAID BEFOR 2002 WHICH DATE TAKEN FOR INDEXATION AND PLEASE TRY TO EXPLAIN WITH RELEVANT SECTION

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