Capital gain calculation


accounts personnel

I have sold my commercial property for Rs.50,00,000/- in the month of May,2019. This property was purchased in May,2016 for an amount of Rs.24,39,960/-. 

Kindly guide me in respect of :- What will be the capital gain and tax amount ? Also can i save the tax by investing the capital gain amount ?

 

 
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KVO Merau Kutchh

CII for FY 2019-20 not released yet, but appreciation of the property would be around 10%, thus LTCG would be around 27 lakhs, CG tax liability for AY 2020-21 wpuld be around 5.4 lakhs (+ 4% cess).

You can invest about 27 lakhs in NHAI or REC capital gains bonds (within 6 months from the transfer) to save the tax.

 
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KVO Merau Kutchh

Sorry for typo error.... CG would be 23 lakhs

Tax liability 4.60L + 4% cess.

Investment in bonds 23 lakhs to almost nullify the LTCG tax liability.

 
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Property sold is commercial. So net consideration Rs5olac should invested u/s 54 or54EC to save the tax
 
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