Long term capital gain

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sourav kumar (Querist)
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16 February 2012 Hello friends i need your help
actually my mother purchase residential plot @ rs. 60,000 (2000-2001) Now we are selling this land @ rs. 7,00,000. and after 2 year we will use this amount for my Marriage. i want to ask that wheather this is taxable as long term capital gain. if yes then show me the calculation

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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16 February 2012 Since the asset has been held for a period of more than 36 months, the asset is a long term capital asset and long term capital gain shall arise on such sale.

Computation:

Sale Price 7,00,000
Less: Indexed Cost of Acquisition
60,000*CII of FY 11-12/CII of FY 00-01
LTCG

The balance amount shall be taxable @ 20%.

CA Rushikesh Kolhe

CA Rushikesh Kolhe (Expert)
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16 February 2012 Whatever Mr. Siddhartha sad is correct. But tell me that what is age of your mother. Does she have any other income? If she do not have any other income then while calculating tax on capital gain she can take benefit of basic exemption limit according to her age. And 20% tax will be leviable on rest of capital gain only.

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