Capital gain tax on sale of land (part sold)

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I purchased a 2 grounds of land in 2003 for Rs.4 lakh and i propose to sell 1 ground for Rs.50 lakhs in September.  How to calculate Capital Gain Tax? how much i have to pay and how to invest it to save the tax?

Replies (2)

Your capital gains will be calculated as under:

Sale Price   :                        50,00,000

Less Brokerage if any:

Net Sale Price                      50,00,000

Less Cost ( Proporationate)

2,00,000/-

Indexed Cost: (Assuming purchase in 2003-04 FY)

1081/463*200000 =  466954/-

capital Gains : 4533046/-

This will be taxed at 20 % plus cess 3%

 

 

Sir,

 

Thanks for the reply,  so the capital gains comes to Rs.45,33,046/- for that i have to pay 20% tax Plus 3% cess.  Whether to avoid the tax can i invest it in some bonds, Post Office savings  or other ways can i invest to avoid the tax.  Kindly give your suggestion.

 

Thanks

R.Ramesh


CCI Pro

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