I sold a residential house plot on 16/09/2010 for 31,25,000.00. The brokerage paid on sale was 90000.00. The land was originally purchased on 28/02/2007 for508000.00(including stamp duty). The development cost incurred during March 2007 was388500.00.
Please advice what will be the tax liability and how we can make a tax planning to reduce the tax effect. Is there any invest scheme, if exist where I can place it?
Sale Value:3125000
less-brokerage: 90000
less-indexed cost of acquisition:508000/519*711=695930
less-indexed cost of improvement:388500/519*711=532222
LTCG=1806848
tax liability=Rs 361369
Dear Sir, u are liable for LTCG. But you will get the benefit CII. Brokerage fee paid will be deducted from the total sales. There is no tax planning for such transaction as the full amount of sales is deposited in the Bank Account.
Thanks
yes, bcaz it is capital asset , u have investment plan u/s- 54EC:- within 6 months from the date of transfer of the asset, the assessee should invest whole (or part of) capital gain in long term specified assets."Long -term specified assets" means any bond redeemable after 3 years issued on or after 01.04.2006/-
a) by the National Highways Authority of India (NHAI) or
b) by the Rural Elecrification Corporation ltd., (REC).
The Investment made on or after 01.04.2007 in the long -term specified assetrs noted above by an assesse during any financial uyear cannot exceed of Rs.50 Lakhs.
Amount of Exemption:-
a) the amount of acapital gains generated on transfer of capital asset or
b) the amount invested in specified asset as stated above,
whichever is lower.
The cost of speicified assets which is considered for the purpose of sec.54EC shall not be eligible for tax rebate u/s-88 or deduction u/s- 80C.
in ur case u still time upto 15.03.2011. to invest in those bonds speicified above.
so, have happy investment plan & save ur tax.
CCI
Pro
CAclubindia
