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Long term capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

08 June 2013 My friend got a compensation from NH for loose his land and building. The land and building is his ancestral property. It was constructed in 1960-65 may be. It's cost around 1,30,000/-. NH demolished it in Jan'2011 and compensation gave Rs.11,25,000/- for it.

Please help me to calculate capital gains with reputed deductions and also guide me how to get refund the TDS amount because TDS certificate issued by NH authorities now only.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

08 June 2013 Capital gains can be computed by taking the property valuation as on 1.4.1981 as cost of acquisition.
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Indexed cost has to be arrived on the basis of above cost.
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By deducting Index Cost from 1125000+( TDS if not included in 1125000/-) , you may arrive the Capital Gains.
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Capital Gain is taxable @ 20%.
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Against the amount of tax payable you may
adjust the TDS.
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However, if a new residential house is purchased or investment in infrastructure bond is made, you may reduce your capital gains tax liability.
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