I bought a property for 5 lac. Sold it after 15 yrs for 22 lac. Indexed value of property is 13 lac. Now do I need to invest only 9 Lacs in property to avoid capital gains tax or the complete sales proceeds i.e. 22 Lac.
Ritesh (Jt Dir) (80 Points)
28 February 2011I bought a property for 5 lac. Sold it after 15 yrs for 22 lac. Indexed value of property is 13 lac. Now do I need to invest only 9 Lacs in property to avoid capital gains tax or the complete sales proceeds i.e. 22 Lac.
Pankaj Arora
(Learner)
(3134 Points)
Replied 28 February 2011
You have to invest LTCG amount in buying new property minus cost of acquisition with benefit of cost inflation index ( 22lacs-13lac = 9 lac.)
CA Abhash Mishra
(Chartered Accountants)
(598 Points)
Replied 28 February 2011
RIGHT U CAN PURCHASE THE PROPERTY OF RS. 900000 OR DEPOSITE THESE AMOUNT IN CAPITAL GAIN ACCOUNT 1988 FOR CLAIMING THE DEDUCTION
CAclubindia
