Tax on Propety sales

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Somashekhara (Querist)
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02 February 2009 I want know about the Tax calculation for the sale of house propety

Property bought for Rs.100000 in 1981
Property sold for Rs.2100000 in 2009

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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02 February 2009 First check any expenses has been incurred for making sales like advt. commison etc.

Deduct same from sale proceeds it is called as net realised sales value.

Since the proper is purchased in 1981 you have to calculate the fair market value as on 1984 and calculated indexed cost as on 2009.

Deduct the indexed cost from net sale proceeds.

Balance is capital gain.