Capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 February 2012
Land Purchased on 1/5/2000 Rs 100000
Construction in 2004-05 Rs 50000
Construction in 2005-06 Rs 1500000
Construction in 2008-09 Rs 500000
The above building is constructed in pieces and the whole Structure Sold on 31/12/2009 for Rs 90 lacs
What will be the Capital Gain,its nature.Kindly explain the way to treat Improvement done in 2008-09(i.e whether it will be indexed if our answer is LTCG.
Construction in 2004-05 Rs 50000
Construction in 2005-06 Rs 1500000
Construction in 2008-09 Rs 500000
The above building is constructed in pieces and the whole Structure Sold on 31/12/2009 for Rs 90 lacs
What will be the Capital Gain,its nature.Kindly explain the way to treat Improvement done in 2008-09(i.e whether it will be indexed if our answer is LTCG.
23 February 2012
For calculation of capital gain, you first need 2 dates.
1. Date of acquisition, which in this case shall be the date on which the construction is completed.
2. Date of transfer.
If the difference between the two dates is more than 36 months, then the asset is said to be a long term capital asset and the gain arising on transfer of such asset shall be long term capital gain.
Accordingly, you will get the benefit of indexation.
I can answer your query in a better way if you provide me the dates.
1. Date of acquisition, which in this case shall be the date on which the construction is completed.
2. Date of transfer.
If the difference between the two dates is more than 36 months, then the asset is said to be a long term capital asset and the gain arising on transfer of such asset shall be long term capital gain.
Accordingly, you will get the benefit of indexation.
I can answer your query in a better way if you provide me the dates.
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