Tax on capital gain

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nitin saraff (Querist)
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15 September 2011 I am a Businessmen and purchased a LAND on 24/03/2007 for Rs.9,75,000/- by taking a loan of the same amount.
Every year i have capitalized the interest paid for the above loan.Interest paid between the time being is approximate about 4,85,000/-.
Now on 20/06/2011 i have sold the LAND for Rs. 19,80,000/-.

Please tell me that what income tax would i have to pay for the above transaction.Will the benefit of interest capitalization & indexing value both in the same transaction will be available to me or not.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 September 2011 Yes you can get the benefit of interest capitlised by you but as you have not given the amount of interest capilised by every year, it is not possible for us to give you the calculation of your tax liability if any.

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nitin saraff

nitin saraff (Querist)
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16 September 2011 I give you exact figure as under:

Date of purchase : 24/03/2007
Cost of purchase : 9,98,120/-

Amount capitalized as under:
On 31/03/2008: 92,702/-
On 31/03/2009: 1,03,826/-
On 31/03/2010: 1,16,285/-
On 31/03/2011: 1,28,844/-
On 20/06/2011: 33636/-

Total cost inclusive of amount capitalized is14,73,413/-.

Date of Sale: 20/06/2011
Value of Sales: 19,80,000/-.

Please tell me the tax amount which i have to pay.

Also tell me the concerned rule or section no.