my client has purchas a land in 2008 of rs. 2,20,000and not shown construction on it. than he sold the house which constructed on that land in oct. 2012, for rs. 8,00,000. and than he purchase a house of 8,50,000 and sale same in 800000 in oct 2012 only, and a last he purchase land worth rs. 307000 in dec 2012 on which he construscted house...
how to calculate capital gain on this??
so what is your querry?
how to calculate capital gain on such??
FIRST WHEN UR CLIENT SOLD FOR 8,00,000 U SHOLD CALCULATE LONG TERM CAPITAL GAIN AS IT WAS PUR IN 2008.
THEN WHEN OTHERS WERE PURCHASED AND SOLD IN OCT 2012 THEN CAL SHORT TERM CAP GAIN.
Dear minaxii
In the above You did mention the mode of house he sold or purchase, it was assemed that the both are resedentioal houses. and the computation of capital gain is as per below
1. Computation of Capital Gain on sale of Land (purchased in 2008)
|
Sales consideration received |
|
8,00,000.00 |
|
Less: Indexation cost of Land (220000*852/582) |
|
3,22,062.00 |
|
Capital Gain on sales of land |
|
4,77,938.00 |
|
Less: Purchase of House (Residential) u/s 54 |
|
|
|
Land |
3,07,000 |
|
|
Construction cost |
(not given) |
3,07,000.00l |
|
Net Long term Capital Gain taxable |
|
1,70,938.00 |
2. Purchase of House (on Oct-12)
|
Sales consideration received |
8,00,000.00 |
|
Less: Indexation cost of House (no Indexation) |
8,50,000.00 |
|
Short Term Capital Loss on Sale of House |
(50,000.00) |
3. Net Capital Gain
|
Long term capital Gain |
1,70,938.00 |
|
Short term capital loss |
(50,000.00) |
|
Net Long term capital gain |
1,20,938.00 |
BUT WHAT ABOUT THE VIOLATION OF THE SEC 54 CONDITION THAT THE PROPERTY PURCHASE TO SAVE SUCH TAX SHOULD NOT B SOLD 3 YEARS?????
The Year in which we violated tha act, in that year the it will be taxable to the extent to which we claimed the deduction
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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CAclubindia
