Long term capital gain

This query is : Resolved

Prabhakar Potnis (Querist)
Follow

24 July 2012 We are having an ancestral house at Akkalkot District- Solapur situated on a plot of Land ad measuring 484.80 sq. m. Our share(1/4th)in the said house and said plot of Land has been sold by me on o3-11-11 for Rs.3.00L. Fair market value of the house along with the plot of Land (entire)as on 01-04-1981 has been worked out at Rs.50,000/-During the year 1985-86 improvements were carried out to this house costing Rs.31,000/-The Indexed cost of Acquisition works out to Rs.3,92,500
our share Rs.98,125/-Indexed cost of improvement works out to Rs. 1,82,970/- Our share Rs.45,742/- Total Rs.1,43,867/-
Expenditure incurred on transfer was Rs.13,100/-Capital gain works out to 3,00,00-1,43,867-13,100=Rs.1,43,033/-Expenditure incurred on transfer was Rs.13,100/-I want to obtain relief under proviso to section 112(1)(a). However in the ITR-2 Return form it is stated that if this proviso is exercised indexation will not be available.The act does not say so. What is the correct position? My net taxable income including long term capital gain of Rs.1,43,033 is Rs.1,83,0331/- The relief available to me would be (Sr.citizen)
2,50,000-(1,83,033-1,43,033)=Rs.2,10,000/-

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

24 July 2012 indexation and 112 are mutually exclusive. i.e. either or kind. You need to choose any one of the above. (Naturally which is more benefitial to you)Either go by indexation and pay a flay rate or go by 112 and pay the rate prescribed in that section.

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