Capital gain

i bought residential property on 21/04/1989 for 70,000/-.  and paid 7000/-as stamp duty.  I sold the property for 12,50,000/- on 01/07/2011. (1) How much capital gain tax i am suppose to pay? (2) I dont want to buy any property now My age is 65 years. What is the planning suggested for lowering tax liability.

Replies (7)

Sale consideration                                                                  =12,50,000

Less : Indexed cost of Acquisition (77,000* 785/172)      = (3,51425)

                                                                                                    --------------------------

Long term Capital gain                                                          =    8,98,575

                                                                                                    ---------------------------

Wait for expert comments

Approx Rs. 180,000/-

70,000 x 785 / 172 = 319,476

12,50,000 - 319476 =  930,524 x 20% = 186,105

OR

12,50,000 - 70000 = 11,80,000 x 10% = 118,000

I hope I am right

77000*785/172=351424

1250000-351424=898576

loang term capital gain @ 20%=179715

education cess @ 3% on tax5391=Rs 185106

interest under sec 234a,b & c pay accordingly

 

you can save tax if you invest within 6 month gain amt Rs 898576 on long term cpaital gain bond

or

invest in new property under sec 54 of capital gain tax act

Cost of acquisition  = 12,50,000

Less indexed Cost =  3,51,424

(77000 * 785 / 172)

 

Capital Gain  =  8,98,575

Tax @ 20%    = 89857 * 2 = 1,79,714 + interst

 

you may  hav an option payin Capital Gain @ 10% if u donot claim indexed cost..tht wud be around 1,25,000...but im not very sure abt this provision.. let the experts give their opinion...

 

 

 

Originally posted by : valji

77000*785/172=351424

1250000-351424=898576

loang term capital gain @ 20%=179715

education cess @ 3% on tax5391=Rs 185106

interest under sec 234a,b & c pay accordingly

 

you can save tax if you invest within 6 month gain amt898576 on long term cpaital gain bond

or

invest in new property under sec 54 of capital gain tax act

 

Agreed 

Dear,

First of all your income is taxable in the year i.e. Assessment Year 2012-13.

Your property i.e. house is a capital asset because you held it more than 3 years.

Full Value of Consideration---  Rs. 1250000

Less:-

Cost Of Acquistion

77000*785/172                          Rs. 351424

Long term capital gain             Rs. 898576

Tax @ 20%                                 Rs. 179715

Education Cess @ 3%            Rs. 5391

                         Total Tax         Rs. 185106

Now you save the capital gain amount by investing in purchase of anoter house oyher wise you pay advance tax ...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details