how much IT Pay.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 January 2011
If a land purchases 1994-1995 82000RS. This land sale 2004-2005 Rs. 300000.
how to calculate Profit & Pay to incom tax.
how to calculate Profit & Pay to incom tax.
25 January 2011
Sold Amt. = Rs. 3,00,000
Trf. Exp. = 0
purchase cost (82,000*480/259) = 151,969
Long Term Capital Gain = 148,031
Therefore, Profit as per IT will be Rs. 148,031 and tax on LTCG is 20% so tax payment will be Rs. 29606.
Regards!!!
Dinesh S. Adhikari
Trf. Exp. = 0
purchase cost (82,000*480/259) = 151,969
Long Term Capital Gain = 148,031
Therefore, Profit as per IT will be Rs. 148,031 and tax on LTCG is 20% so tax payment will be Rs. 29606.
Regards!!!
Dinesh S. Adhikari
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 January 2011
Sir,
Plz explain how to caculate. and what is 480 & 259
(82,000*480/259)
Sir plz explain it.
Plz explain how to caculate. and what is 480 & 259
(82,000*480/259)
Sir plz explain it.
25 January 2011
Sir,
Actualy there is one concept under income tax act , i.e., Capital Gain. If you held any asset more than 3 years then that asset will be Long Term Capital Asset, subject to certain conditions.
Here, they assume that if you have Value of money changes with the time, say Rs. 100 will be having more value 10 years ago, therefore, to compute correct value of any asset at present time income tax department is using Cost Inflation Index(CII) and every year they are releasing CII for that speciic year.
Here for 2004-05 CII is 480 and 1994-95 CII is 259. So if you want to know that what would be value of any any asset in 2004-05, which has been purchased in 1994-95 then you would use following fourmula:
=purchase value of asset*CII of the year of asset sold/CII of the year of purchase
"Please read Capital Gain Chapter of Income tax for more clarification.
Regards!!!
Actualy there is one concept under income tax act , i.e., Capital Gain. If you held any asset more than 3 years then that asset will be Long Term Capital Asset, subject to certain conditions.
Here, they assume that if you have Value of money changes with the time, say Rs. 100 will be having more value 10 years ago, therefore, to compute correct value of any asset at present time income tax department is using Cost Inflation Index(CII) and every year they are releasing CII for that speciic year.
Here for 2004-05 CII is 480 and 1994-95 CII is 259. So if you want to know that what would be value of any any asset in 2004-05, which has been purchased in 1994-95 then you would use following fourmula:
=purchase value of asset*CII of the year of asset sold/CII of the year of purchase
"Please read Capital Gain Chapter of Income tax for more clarification.
Regards!!!
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