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.
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
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.
27 March 2010
The year of holding shd be more then 3 year to make it LTCG
27 March 2010
agree with expert
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