Capital gain

Querist : Anonymous (Querist)
13 September 2017
MY CLIENT HAS LAND & BUILDING (HOUSE PROPERTY) OF RS. 1601590 IN 2012-13 NOW HE SELL IN 2016-17 IN RS. 2800000. I WANT TO KNOW HOW MUCH LONG CAPITAL GAIN WILL RAISED AND IF CLIENT WANTS TO PURCHASE IN 2017-18 NEW PROPERTY THEN IT IS POSSIBLE TO SET OFF.

K Srinivas, CMA CS (Expert)
13 September 2017
Base year is 2001-2002 and the year of transfer is 2016-17. CII is 100 and 264 respectively.

Indexed cost of acquisition is Rs.1601590 *(264/100) is Rs. 42.28

If your client is selling at Rs.28 lacs, then capital loss will be 28lacs less 42.28 lacs= Rs.14.28 lacs

K Srinivas, CMA CS (Expert)
13 September 2017
Your client can set off the long term capital loss against Long term capital gains only.

K Srinivas, CMA CS (Expert)
13 September 2017
If it is not possible to set off against any long term capital gains in the year 2017-18, then your client can carry forward such losses upto 8 assessment years.

K Srinivas, CMA CS (Expert)
13 September 2017
Capital gains exemption can be claimed by investing or constructing a property. This case is that of long term capital loss and therefore no question of exemption arises.

Dibin Divyakumar (Expert)
14 September 2017
There is a capital gain =1601590*264/200 = 2114099
So LTCG = 28L-21.14099 = 6.85901, The inddex for 2012-13 is 200

https://caclub.in/cbdt-notified-new-cost-inflation-index-base-year-2001-02/

K Srinivas, CMA CS (Expert)
14 September 2017
Thanks, Dibin ji!

I misread the year of acquisition as 2001-2002

K Srinivas, CMA CS (Expert)
14 September 2017
By buying property within 2 years of transfer or to construct a residential property within 3 years of transfer, you can claim exemption of long term capital gains .

One requirement is that you should invest the amount of capital gains in such purchase or construction

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