capital gain on part sale of property

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sunil (Querist)
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27 March 2010 I sold 2 floors out of my 5 floor house and received 35 lacs and the cost of total assets was 40 lacs. what will be the capital gain.

sivadas chettoor

sivadas chettoor (Expert)
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27 March 2010 You can work out the cost on the 2/5th properties on proportionate basis and do the workings accordingly.

siva208@yahoo.com

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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27 March 2010
Sales proceed 35 lakh

Cost of aquisiton 16 Lakh

Capital gains 19 lakh

Note

Date of construction is missing above so that iam not in a positon to compute the indexed cost of construction

megha

megha (Expert)
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27 March 2010 Hi Sunil,

the cost of the property sold is 40/5*2 = 16 Lacs

The sales consideration is 45 lacs

The period of Holding is important to determine LTCG or STCG.

If the Period of Holding is more then years , then cost is to be indexed as follows :

Cost * Indexation value of year in which it is sold /Indexation value of year in which it is purchased or constructed

Then LTCG will be = sales consideration - indexed cost

In case of LTCG , u can claim the benefit u/s 54F for avoiding tax payment .

If STCG,

STCG = Sales consideration - cost

I hope the above clarify the provision.

megha

megha (Expert)
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27 March 2010 The year of holding shd be more then 3 year to make it LTCG