capital gain on part sale of property
This query is : Resolved
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
(Expert)
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
siva208@yahoo.com
CA.ViVeK M ACA
(Expert)
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
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
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.
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.
CA Ashok Kumar Sahu
(Expert)
27 March 2010
agree with expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Accounting treatment of AMC alongwith the purchase of Laptop
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
