Ltcg
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 December 2018
I have purchased a plot in 1989for RS. 6000. In Dec 2018 I have sold it for 1200000. How the calculation for LTCG will be made?
CA ANUBHAV
(Expert)
13 December 2018
For calculation of long term capital gain you have to take value of plot as on 01.04.2001 and apply cost inflation index then indexed value will be subtracted from sale price and balance will be capital gain...
14 December 2018
Sales consideration - 1200000
(-) index cost of acquisition ( 6000 * 280 / 100 ) 16800
Taxable LTCG 1183200
capital gain = sales - index cost of acquisition
(a) Index cost of acquisition = Actual purchase price *( Index in year of sale / index in year of purchase ).
(b) Index cost of acquisition = Fair market value on the year 2001 * ( Index in year of sale / index in year of purchase ).
If the purchase made before 2001, the fair market value for the year 2001 shall be taken on purchase price. In your case you should find the Fair market value for the year 2001 and follow above working of (b).
indexation on 2018-19 = 280
indexation on 2001-02 = 100
Hope you can understand
(-) index cost of acquisition ( 6000 * 280 / 100 ) 16800
Taxable LTCG 1183200
capital gain = sales - index cost of acquisition
(a) Index cost of acquisition = Actual purchase price *( Index in year of sale / index in year of purchase ).
(b) Index cost of acquisition = Fair market value on the year 2001 * ( Index in year of sale / index in year of purchase ).
If the purchase made before 2001, the fair market value for the year 2001 shall be taken on purchase price. In your case you should find the Fair market value for the year 2001 and follow above working of (b).
indexation on 2018-19 = 280
indexation on 2001-02 = 100
Hope you can understand
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14 December 2018
very nice kathir Sir
. .
. .
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14 December 2018
To determine the FMV of the property as on 01/04/2001, the following options may be considered.
Report of a Valuation Officer or a Registered valuer or an overseer or a surveyor or an assessor. [Most people prefer report of a registered valuer.]
You may ask the registrar/sub-registrar of that area where your land was situated to provide you the details of the transactions which occurred on or around 01/04/2001, and from there you may calculate WEIGHTED AVERAGE price. For e.g. if 2 transactions took place 1 @ Rs.10,00,000 @ say x acres 2 @ Rs. 30,00,000 @ say y acres Then weighted average price per acre would be (10,00,000+30,00,000)/ (x+y) acres. Now apply this weighted average price to your area (per acre) and compute its value as on 01/04/2001.
prateek63@yahoo.co.in
Report of a Valuation Officer or a Registered valuer or an overseer or a surveyor or an assessor. [Most people prefer report of a registered valuer.]
You may ask the registrar/sub-registrar of that area where your land was situated to provide you the details of the transactions which occurred on or around 01/04/2001, and from there you may calculate WEIGHTED AVERAGE price. For e.g. if 2 transactions took place 1 @ Rs.10,00,000 @ say x acres 2 @ Rs. 30,00,000 @ say y acres Then weighted average price per acre would be (10,00,000+30,00,000)/ (x+y) acres. Now apply this weighted average price to your area (per acre) and compute its value as on 01/04/2001.
prateek63@yahoo.co.in
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