Capital Gains

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hakeem abdul (Querist)
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27 August 2009 sir,
This question is regarding capital gains, recently i had disposed off my land situated in urben area market value worth 10 lacs.. aquired in1995 my ques is whether i had to pay LTCG ?in this regard as i too have some 6lac woth debts not relating to dat asset... is there any provision regarding claiming exemption frm tax. moreover my father is a retired gov.employee physically handicapped,64years is ther any any relaxation for PH persons...? and if i had to pay LTCG wat is da due date? and how max possible i can plan for claiming deduction of debts... thank u sir.. waiting fr ur reply

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 August 2009 Capital Gains Tax is payable by the owner of
the land on transfer of a capital asset.
Sales Consideration (or Stamp Duty purpose Valuation, which ever is higher) is taken as Sales Price. From this you deduct indexed cost. Suppose you have purchased the land in Dec 1995 in Rs 1.00 Lac then indexed cost of this land would be almost double i.e. say Rs 210000/-. Your Capital Gain would be
1000000-210000=790000.
You may save capital gains tax U/s 54EC and 54F.

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