Capital Gain Tax

Mr. Sivaraja,

1. if you couldn't ascertain Fair Market Value as on 01.04.1981. then calculate it as follows:-

    19000/100*711=135090.00

2. Cost of Improvement:-

    35000/182*711= 136730.00

3. Capital Gain:-

    Full Value of Consideration (-) Cost of Acquisition (-) Cost of Improvement:-

    2000000 (-)135090 (-) 136730 = 1728180.00

    Long Term Capital Gain @ 20% will be charged on 1728180.00 = 345636.00 and also Income Tax Slabs will be effected i.e. Rs. 160000/Rs. 190000/Rs. 240000.

Dear Sivaraja,

You may contact the concerned Registrar office and ascertain the guideline value of the property as on 1.4.1981, the value adopted by the registrar is the fair market value.You may take that value as cost. The other workings are asper Mr.Love

regards

You should refer to an authorised civil engineer for the valuation and find out its value as on 01.04.1981. If its higher than Rs. 19,000.00 (which will be actually), then just replace Rs. 19,000.00 by that value, and any value thereof. Rest calc. will be as per Love's calc. It will reduce the Tax Liability. Regards, Abhishek K. Pandey

Hello,     my mother is going to sell a house in sringeri for Rs 30 lacs in december 2010, which she had inherited from her mother in 1996 after her mother died throgh will. and  the said property was transfered from her husband somewhere in 1950. this  property is 150 yrs old.  my mother  is  thinking of gifting  the entire amount to her children i.e me, brother and sister.

How do we calculate the Cost of acquisition of this house property? Does she have to invest that amount in another house property just to avoid tax  and  then gift the property to her children?  I want to know  how to calculate  the capital gain in this regard?  what will be the tax payable  if the entire amount is not invested in new property? please help me regarding this topic at the earliest.(fair market value as on 1981 was Rs2,24,000/-(140*20*Rs80).

 

ya Mr. Arora's answers are correct eventhough for ascertaining cost of acquistion fair market value should be taken as per details to be collected from the registrar office of the concerned location of the property for valuation purpose