LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Capital gain

Gottumukkala srinivasu (Accountant) (34 Points)

25 October 2011

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.

Reply
Follow
Share

5 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 25 October 2011

Hi,

Please find attached herewith the Excel file containing Short Term Capital Gain Calculation.

Regards,

Devendra K

Attached File : 169003 856401 cap gain calc.xls downloaded: 225 times

Sanat kumar (Chartered Accountant) (265 Points)
Replied 26 October 2011

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.

Devendra (Chartered Accountant) (4775 Points)
Replied 26 October 2011

	Calculation for Capital Gain arising on sale of House Property
	Sales Consideration	1850000
	Cost of house (Purchase Value)	850000
	Short Term Capital Gain	1000000
	Tax on Capital Gain @ 15%	150000
	Add : Education Cess @ 3%	4500
	Tax Payable	154500
	Total Tax payble	154500

	Notes :
1	As the Property is sold within 3 years, there is a short term capital gain arising in the transaction
2	The benefit of Cost Inflation Index shall not be available while calculating the Capital Gain.
3	Interest u/s 234A, 234B and 234C also shall be charged on the above calculated Tax

Hari Wadhwa (CA in Practice) (485 Points)
Replied 26 October 2011

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.