Income Tax
This query is : Resolved
25 March 2009
Shop was purchased in the year 1987-88 at 1.50 lacs and renovation to the said shop was made amounting to Rs. 1 lac in the same year.
Now we are expecting sale proceeds in the A.Y 2009-10 amounting to Rs. 25 Lacs.
Kindly let us know the tax implications and or investment to be paid so as to have mimimum tax liability within the legal framework.
Shop was purchased in the year 1987-88 at 1.50 lacs and renovation to the said shop was made amounting to Rs. 1 lac in the same year.
Now we are expecting sale proceeds in the A.Y 2009-10 amounting to Rs. 25 Lacs.
Kindly let us know the tax implications and or investment to be paid so as to have mimimum tax liability within the legal framework.
Reetika Goel
(Expert)
26 March 2009
A. Full Value of Consideration = Rs. 25,00,000
B. Cost of Acquisition = Rs. 1,50,000
Indexed Cost of Acquisition = Rs. 5,82,000
[Rs. 150000*582/150]
C. Cost of Improvement = Rs. 1,00,000
Indexed Cost of Improvement = Rs. 3,88,000
[Rs. 100000*582/150]
Capital Gain (A-B-C) Rs. 15,30,000
The amount should either be deposited in the CAPITAL GAIN ACCOUNT SCHEME till 31st July' 2009 or should be invested in some house property or other qualified assets by the said date to avoid tax implications on the Capital Gain.
B. Cost of Acquisition = Rs. 1,50,000
Indexed Cost of Acquisition = Rs. 5,82,000
[Rs. 150000*582/150]
C. Cost of Improvement = Rs. 1,00,000
Indexed Cost of Improvement = Rs. 3,88,000
[Rs. 100000*582/150]
Capital Gain (A-B-C) Rs. 15,30,000
The amount should either be deposited in the CAPITAL GAIN ACCOUNT SCHEME till 31st July' 2009 or should be invested in some house property or other qualified assets by the said date to avoid tax implications on the Capital Gain.
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