Capital gain on sale of land

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Ramandeep Singh (Querist)

31 May 2009 Please can u compute the capital gain with explanation

1. In 2005 land brought for Rs 200000
2. In 2006 1,50000 spend for construction.
3. In 2007, 2,00000 spend on construction
4. In 2008 , Rs 2,50000 spend and total land with building sold for Rs 1000000.

jatin kapoor

jatin kapoor (Expert)

01 June 2009 pls specify the dates if u can as , the question is not not specific as to dates therefore we can not take period of holding.

if we assume long term capital asset
sales consideration 1000000
- indexed cost of aquistion
200000/480*582 242500
-indexed cost of imp.
150000/497*582 175654
-indexed cost of imp.
200000/519*582 224277
-in 2008 250000
long term capital gain =107569

jatin kapoor

jatin kapoor (Expert)

01 June 2009 if the period of holding the asset is more than 36 months it is long term asset
and if not then short term capital asset.

for 2005 i took index of 2004-05
for 2006 i took index of 2005-06
for 2007 i took index of 2006-07
for 2008 i took no index as the asset is sold in the same year

Ratan Sharma

Ratan Sharma (Expert)

01 June 2009 Agreed

CA.BHARAT BHUSHAN

CA.BHARAT BHUSHAN (Expert)

01 June 2009 If Land and Building belongs to any business then separate capital gain will be computed for Land and for building. You have to separate the sale considerations accordingly.