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Capitals gain from sale of plot pls guide and compute??

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deep1976

propreitor

231 Points Posted on 21 August 2013

Dear Forum Members

My mother age is 58 years and purchased a plot from her household savings for Rs 35,000/- in year 1996-97 and have sold for Rs 7,50,000/- cash in july 13 2013-14 due to some financial crunch,she has applied for pan card recently and is ready to pay the capital gain tax as per the norms,pls guide how to compute this case and file the return in 2013-2014,will she get the normal deduction and can we invest any uti mutual funds for exemption like ,not the goi rec nhai bonds to save tax and do not go for lock in period,she is ready to pay the tax. PLS GUIDE AND HELP because here at my place all people talk different things totally confusion.

Regards

Deepak

Replies (1)

sreenath

Articled Assistant

203 Points Posted on 21 August 2013

Hi Mr. Deepak,

Capital Gains is Taxable in the year in which it arises She Purchased the House in 1996-97 for Rs. 35000/-and Sold in 2013-14 for Rs. 750000/-

Now you Need to Pay Advance Tax for the Capital Gains

The Capital Gain Calculation

Full Value of Consideration 750000

Less :- Cost of Transfer (Example) 15000

Less :-Cost of Acquisition 107754

(35000*939/305)

(If you Incurred any cost of

Improvement for the Property it is Eligible

same calculation as above)

Capital Gains 627246

Exemptions

Section 54 you Have to Buy a new House or Construct a house with in a period of 3 year from the date of transfer tii that time the Gain amount you have to deposit in Capital Gains Account Scheme

Section 54EC

You Have to Invest the gain Amount with in a period of 6 months from the date of Transfer in Long Term specified bonds as specified by the Govt for a minimum period of 3 Years then you will get exemption