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How much should I Invest in Capital Gains Account Scheme

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This discussion explains how to calculate your Long Term Capital Gains (LTCG) for tax purposes. It clarifies the concept of indexed cost of acquisition, which is crucial for determining your taxable gain. The user is seeking guidance on how much to invest in the Capital Gains Account Scheme to effectively reduce their capital gains tax liability, with their calculated LTCG being around £16 lakhs.

C K Venugopal

C K Venugopal (Querist)
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19 July 2025
a) What is Indexed Cost of Acquisition?
b) What is my Long Term Capital Gains?
c) How much should I invest in Capital Gains Account to Save Cap Gains Tax?
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 July 2025 1. You can consider either the amount you paid or circle rate as on 01.04.2001. Generally circle rate would be higher.
2 Sell price minus Indexed cost of acquisition as on FY 2024-25.
3. The calculated LTCG. around 16 lakhs.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2025 Good luck...

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