Dear friends
My freind has purchased a property on 10/8/2009 for Rs.8,50,000/-, the same property has sold on 15/10/2011 for Rs.18,50,000/-. for this any capital gain is applicable. plz. inform the caluclation of capital gain for this.
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Capital gain
Replies (5)
Hi,
Please find attached herewith the Excel file containing Short Term Capital Gain Calculation.
Regards,
Devendra K
Hi Gottumukkala,
If the property comes under the definition of capital asset u/s 2(14) of Income tax Act, then on the sale of that property capital gain tax would be applicable.
In this case, if it is a capital asset then STCG will be calculated and taxed accordingly as per the calculation of Mr. Devendra.
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Calculation for Capital Gain arising on sale of House Property |
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Sales Consideration |
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1850000 |
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Cost of house (Purchase Value) |
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850000 |
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Short Term Capital Gain |
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1000000 |
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Tax on Capital Gain @ 15% |
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150000 |
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Add : Education Cess @ 3% |
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4500 |
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Tax Payable |
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154500 |
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Total Tax payble |
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154500 |
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Notes : |
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1 |
As the Property is sold within 3 years, there is a short term capital gain arising in the transaction |
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The benefit of Cost Inflation Index shall not be available while calculating the Capital Gain. |
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Interest u/s 234A, 234B and 234C also shall be charged on the above calculated Tax |
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Dear Gottumukkala
Besides above, as per Section 80C, if a person has claimed the benefit of House loan repayment U/s 80C & have sold the property within 5 years from the ened of the Financial Year in which house was purchased, then ALL the benefits availed under sec80C of earlier years need to be REVERSED & will be included in the taxable income of the year in which the property has been sold.
Dear friends
Thank you.
HAPPY DIWALI TO ALL
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