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Capital gain calculation

Tax queries 503 views 1 replies

 

Commercial Property – shop

 

Mr.A has entered into agreement to purchase a shop for Rs. 20,00,000/- (Stamp Duty value was rs 24,00,000/-) which is under construction from a builder.

The agreement was done on Non-judicial Paper on 19/12/2011

 

Payment through Bank were as below

   2,00,000.00  (2010-11).  23/09/2010

   4,00,000.00  (2011-12).  19/12/2011

   4,00,000.00  (2012-13).  16/06/2012

   4,00,000.00  (2012-13).  15/10/2012

   4,00,000.00  (2012-13).  17/12/2012

   2,00,000.00  (2013-14).  04/06/2013

Total = 20,00,000/-

 

      13,180.00    Registry Fees.  16/04/2014

      61,300.00    Stamp Duty.      16/04/2014

 

 

 

 

 

 

 

Total Cost is Rs = 20,74,480/-

 

19/12/2011   Agreementdate 

03/08/2013   PossessionLetter

16/04/2014   saledeed / registration 

 

This property is been sold for the

Sale consideration on suppose today’s i.e 30/06/2018 for rs 30,00,000/- (Stamp duty value is also 30 lakh)

 

 

We need to calculate capital gain

 

CII 

2010-11.  167

2011-12.   184

2013-14    200

2014-15.   220

2018-19.  280

 

 

Regards

Naman Jain

Replies (1)
As per section 2(47) of income tax Act 1961 " Transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract is included in definition of transfer. As per above definition purchase date will be 03/08/2013 and CII for FY 2013-14 is 220. Accordingly your capital gain will be - Full value of consideration - 30Lakhs Less, Cost of acquisition 2074480*280/220 = 26,40,247 Taxable capital gain will be 3,59,753. For any query post here or whatsapp me 7059758724.


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