Capital Gain Tax Calculation

Your cost of purchase will be replaced by fair market value as on 1 Aprl 1981 as it is higher than purchase price. You will have benefit of indexation. Indexed cost will be 254000*5.82=.1478280. Hence long term capital gain will be Rs.11,71,720. You have invested Rs. 9,39,030 in new house. Hence you should invest rs. 231790 in 3 years bonds of REC of NHAI to exempt entire gain.

hi, the CII for F.y.07-08 = 551 and not 582.. so the calculation would be like this

sale consideration - 26,50,000

ICOA                          - 254000*551/100 = 1399540

LTCG                         - 12,50,460 

EXEMPT 54              - 9,39,030

therefore, LTCG      - 3,11,430

you pay CG tax or see whether your father has made any improvement on the flat before sale.... you can claim Indexed cost of improvement which will certainly reduce the gain.. i don't think you can get 54ec exemption because it should be done within 6months from the date of sale...

agree with what C.Balaji has said .... Further, in order to save tax, as per sec. 54, u can construct one or more house upto three years from the date of sale then the amount incurred will be exempt.

54 - i think the Capital Gain amount can be invested only in one res. house and not more than one res. house...

Dear Varun/Balaji/Krutesh,

Option of exemption under section 54/54F shall be only available if assesee excersice the option of investing such gains/proceeds by keeping such money in Capital Gain Account Scheme by latest 31st July 08.

Also, in relation of re-investment in REC or NHAI (section 54EC) it is to be excerside with in 6 months from the date of transafer.

In veiw of above, Mr. Sandip, you dad is liable to tax and need to pay tax by filing return of Income with applicable penal interest.

Thanks.

if shares in name of Father & Mother jointly (Father is first holder) is given to son after the death of father. will the capital gain received by son will be clubbed with mother ?is this amounts to inheritance / Gift / transfer ? though LTCG is exempt U/s 10(38) and Dividend is exempt U/s 10(34) will it be clubbed with mother or assessed under son (Son is not minor) if any case law or judgement please let me know