Capital gain

This query is : Resolved 
 


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.


THANKS IN ADVANCE


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



You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :






×
close x
Get Income Tax App    |    x