Capital gains

This query is : Resolved

Guest

Guest (Querist)

20 October 2013 Dear Experts

FOR A.Y. 2013-14

I have income of Long term capital gains through sale of Immovable Properties (Land)

Kindly guide me

How can I reckon my Income ?

Which Provisions get attracted ?

Guide me calculation method for such situation

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

20 October 2013 Long term gains are calculated as under:

Sale proceeds

Less: Expenditure of transfer (such as commission)

less: Indexed cost of acquisition

Less: Indexed cost of improvement

= Capital gains

Indexed cost of acquisition means Cost of acquisition*(Cost inflation index in the year of sale)/(cost of inflation index in the year of purchase)

For Cost inflation Index refer http://wealth18.com/cost-inflation-index-chart-table-1981-to-2013-2014-for-income-tax-capital-gain-purpose/

Indexed cost of improvement is also calculated in the same manner.

The resultant capital gains are taxable at 20%.

To claim exemption, you can reinvest the proceeds from the sale as provided under Section 54, 54ec or 54F. If you reinvest as provided under any of these sections, you can claim exemption from tax on long term capital gains.

Guest

Guest (Querist)

20 October 2013 Sir I Sold Immovable Properties so Sec.50C is attracted

Isn't it?

So I want calculation under Sec.50C If it goes right

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

20 October 2013 50C applies only for valuation purposes.

As the section suggest "Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed 51[or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed 51[or assessable] shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer."

Therefore, it is not necessary that 50C has to apply. In case where you have sold the property at a value less than stamp duty valuation, 50C will apply else not.

Even where valuation of consideration is determined under 50C the taxation shall be done mentioned in my earlier reply.

Guest

Guest (Querist)

20 October 2013 Thanks a lot sir

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

20 October 2013 :) anytime.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok