capital gain on sale of land n building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2011 i have sold my land and building for rs. 11 lacs. the municipal valuation of the land during time of sale was rs. 14 lac.this property was constructed in the year 1975.all the taxes/duties related sale have been paid by the purchaser of property.
1. i want to know what is my capital gain on sale?
2. am i taxable on rs.11 lacs or 14 lacs?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 May 2011 The information supplied by the Author is not complete yet the following answer may serve your purpose-
1. The valuation of Property as on 1.4.1981 is required as the same will be the Cost of acquisition. Sy it is arrived at Rs 1.00 LAc
2. Its indexation has to be done and which will be approximately more than 7.25 times the value as on 1.4.1981.
Hence cost will be taken at Rs 725000/

3. Capital Gain =11,00,000-7,25, 000.
4. Municipal Valuation if means the value of land and building adopted by the Stamp duty Valuer then
Capital Gain =14,00,000-7,25, 000.
5.The Capital Gain Yax can be saved by investing in a new residential house.

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