Capital gains query

sale consideration 8500000

less:transfer cost 200000

less:indexed cost of acquisation 18000*cost index of 2011-12/ cost index year of transfer i .e,447

less:indexed cost of improvement: 

for his father : 50000*cost index of 2011-12/cost index of 1984-85 i.e,125

                 add:         80000*cost index of 2011-12/cost index of 1993-94 i.e,244

 for him    add:       100000*cosi index of 2011-12/cost index of 2007-08 i.e,551 AND THE REMAINING AMT IS LONG TERM CAPITAL GAIN

As the MV of the land on Apr81 is more than the land purchased in 1972, hence the MV of property of Rs18000 will be taken as the cost of acquisition by Mr B while calculating the Capital Gain for A.Y.2012-13 as it is more beneficial because the Cost of Acquisition is more.  the Cost of Acquisition of Land for Apr81 & the cost of residnetial property will be taken seperately.

Cost of Improvement will be taken as acutal expenditure incurred both by A&B i.e 80000+100000 which will be also required to be indexed.

the capital gain will be calculated as follows:

Sales consideration Received                    85,00,000

Less: Indexed Cost of Acq of land (CIF for 11-12/CIF for Apr81)

           Indexed cost of Acq for property constr(CIF for 11-12/CIF for93-94)

           Indexed Cost of Improvement for  93-94(CIF for 11-12/CIF for 93-94)

           Indexed Cost of Improvement for  07-08(CIF for 11-12/CIF for 07-18)

Balance will be LTCG/LTCL as the case maybe.