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Capital gain

Tax queries 544 views 1 replies

Prakash Mali

Artical Assistant

166 Points Joined May 2011

Hello... Friends,

Can you please advise on below matter?

I purchased a house in 1997 (before commencement of the project) in Rs. 10 lakhs, which have been paid by me in various installments during 1997-2003 (Say Rs. 100000 on every year ending)(Agreement for purchase is executed in 2003 after payment to developer at Rs. 10 Lakhs), and now I sold the same house in 2012 at Rs. 25 lakhs. Then what will be capital gain and tax thereon? (If i am not going for any investment under capital gain scheme as I have already STCL & LTCL to be set off.). I want to calculate tax amount and wanna know procedure to calculate it.

I also want to confirm that whether I will considered indexation form 1997 to till or I will considered it on payment basis.

Please help its very urgent.

Thanks in Advance for your suggestion.

Replies (1)

NAIR MITHUN MOHAN

ARTICLE ASSISTANT

77 Points Joined January 2012

In Case of Capital Gain the transfer come into effect when u Get possession of that house .As per ur case i think u got the possession in the year 2003.So the calculation is

Sales:25lacs

Less: cost 10lacs*indexation of 2003/indexsation of2012

ltcg/loss:xx

After setting of losses Tax i.e (short term losses can be setoff against any capital gains but longterm losses specifically only with LTCG )will be charged at a flat rate of 20% on LTCG if u r not investing as per section prescripition.