Long term capital gain on plot

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Two brothers jointly purchased a plot in 2009 and sold it in 2021. This discussion outlines how to calculate the long-term capital gains tax for each brother. The sale proceeds are divided equally, and the tax is calculated on each individual's share of the profit after accounting for inflation through indexation.

GIRISH KUMAR GARG

GIRISH KUMAR GARG (Querist)

21 June 2021 Two Brothers purchased a plot in May 2009 for 11 Lacs which they contributed equally. Registration and other charges Rs. 86840/- were also borne similarly. Now they sold it in June 2021 for 35 Lacs.
Can you please compute the tax impact on both of them.
Thanks for your time.

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

21 June 2021 Capital gain (sale consideration - indexed cost of acquisition) is taxable on equal proportions.

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CA Satish Badve

CA Satish Badve (Expert)

22 June 2021 If the purchase agreement mentioned equal share for both the brothers then the purchase cost plus Registration Cost/2 is each brother acquisition cost. Apply indexing on this cost .50% of Sale value minus the index cost of acquisition is LTCG

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