Please help me solve this problem-capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 August 2013 Raghav sold gold ornaments on 16-7-2012 for a sum of Rs.10 lakhs, The gold was purchased in 1978 for Rs.60000 by his father.The fair market value of the gold as on 1-4-1981 was Rs. 1 lakh. His father gifted the gold to Raghav on 15-7-12.

He spent Rs. 2 lakhs till 31-7-13 on construction of house property

Deposited Rs. 5 Lakhs on 31-7-12 in capiltal gains accounts scheme

Spent rs. 4 lakhs on construction of house property till the stipulated time.

Compute the capital gains for various relevant assessment years.

Please help me solve this problem.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 August 2013 Hints :
Compute the indexed cost of acquisition on the basis of 1.4.1981 price.
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U/s 54F -he is required to invest Rs 10.00 lac in residential house to get full exemption.
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Deposited Rs 5.00 lac in Capital Gains A/c and invested Rs 2.00 in the new property - clearly meant that for AY 2013-14 also he will be liable for capital gains tax. Only 70% of Capital Gains will exempt and on balance 30% he has to pay tax @ 20%.
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After the stipulated time- if 1.00 lac remained unutilised - then applying the formula given under section 54F - you have to pay tax on 10% of the original capital gain.
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