Capital gain calculation

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Dilip (Querist)

24 December 2014 Sir, I have purchased commercial block on October 2014 of Rs. 65 Lacs. Market value of the same was 72 Lacs hence I have paid stamp duty @ 6.5% on market value + other charges total 5 lacs. Net purchase value Rs. 70 Lacs
I wish to sell the same and I have buyer of Rs. 73 Lacs. But some one said me from January market rate will be increased by 20%. The market value of the same will be 86 Lacs.
My question is how Capital Gain will be calculated ? please give me details of capital gain & Tax.
Please help me to decide to sell or not

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Expert)

24 December 2014 First of all you should not have Residential Property in your name more than one and wishes to purchase one another Residential House.

If yes you can sell the same and deposit the Sale Proceeds in a Capital Gain Investment Scheme.

You shall be benefited proportionately means if you Invest 43 Lacs than you have to borne Tax on 43 Lacs in a manner as follows:-

Sale Proceeds Rs. 86 Lacs
COA Rs. 70 Lacs
STCG Rs. 16 Lacs
Investment made or will be made in furture i.e 43 lac i.e 50% of SP
Tax on Gain .30*16=4.80 Lacs

But 50% would be deducted from Tax as benefit due to Investment
Bal 2.40 Lacs would be Tax.

Rupesh Jain

Rupesh Jain (Expert)

25 December 2014 IT IS SHORT TERM CAPILTA GAIN DUE TO YOUR HOLDING PERIOD IS LESS THAT 36 MONTH

RS.,73-70= 3 LACS WILL INCLUED IN YOUR OTHER INCOME AND PAY TAX AS PER SLAB OF INOCME TAX.

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Expert)

25 December 2014 you are right but he can claim benefit u/s 54F

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