LONG TERM CAPITAL GAIN ON SALE OF RESIDENTIAL HOUSE PROPERT

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BHAGWAT (Querist)
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01 March 2011 DEAR ALL,
I SOLD MY RESIDENTIAL HOUSE IN JANUARY 2011 @ RS. 48,48,000/- AND I PURCHASE A NEW FLAT @ RS. 1675000/- . I PURCHASE MY RESIDENTIAL HOUSE IN OCMTBER 1983 IN @ RS. 16000/- AND MAKE EXPENSES ON IT RS. 500000/- IN 1999-2000. SO, HOW I SAVE MY CAPITAL GAIN TAX

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 March 2011 1. Your cost of acquisition (Purchase Cost)
can be taken as under -

16000x 711/116=98069
500000x711/389=913882
---------
Total 10,11,951
This is known as Indexed Cost of Acquisition
2. Capital Gain = 48,48,000-10,11,951
= 3836049
.
3.You are required to invest Rs 38,36,049
Out of it the amount of 1675000/ which you have invested in new flat will be deducted and balance amount will be taxed.
4.By depositing that balance amount in NHAI Bonds or REC Bonds ( Capital Gains Bonds ) You may save Capital Gains Tax.

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