Long term capital gain

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SAGAR DEOKAR (Querist)
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17 March 2014 MY FATHER AGE 82 YEARS
OWNS A RESIDENTIAL PROPERTY:
PLOT SIZE 4500 SQ.FT
PURCHASED IN 1961 AT RS 1000.
HOUSE 1000 SQ FT
BUILT IN 1962 COSTED RS 2000 FROM OWN FUNDS
NOW WE ARE INTENDING TO SALE THE PROPERTY AT RS 45,00,000
WHAT WILL BE THE TAX IMPLICATION

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 March 2014 Dear Sagar,

you need to get a property valuation done for fair market value as on 1 April 1981. Alternatively, you can consider Rs 3000 as the cost.

Then you need to multiply the FMV or the actual cost by 9.39. That shall be considered as your indexed cost. deduct the same from 45 lakhs to arrive at the long term capital gains.

you can either pay long term capital gains tax at 20% on the capital gains computed above or invest the capital gain amount under section 54/54ec to claim exemption.

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