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Capital gain
At A land was purchase in 1979 for Rs.5000 and sold in A.Y.2014-15 for Rs. 12400000 , so what. Will be the capital gain and how can I invest the consideration money so that no tax liability will be?
Replies (3)
if the land sold is agricultural land then whole of capital gain is exempt from tax. otherwise it would be taxable and exemption under section 54F can be availed.
capital gain shall be calculated as follows= [12400000-(939*5000/100)]....... you need to invest this capital gain in bonds of NHAI or REC or buy/construct any house property. in case you plan to buy or construct any house property, then you need to keep in mind that you will be eligible for this deduction only if you own one house property at time of purchase of this new house.
Sale consideration = Rs. 1,24,00,000/-
Less
Indexed cost of acquisition = Rs. 51,645 /- (5500 x 939/100) (MV as on 1981 could be 5500)
Long term capital gain = Rs. 1,23,48,355/-
You are required to invest LTCG to save tax.
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