Computation of long term capital gains tax payable

Others 1867 views 7 replies

Kapil Tiwari

Senior Export Executive

454 Points Posted on 05 October 2012

A plot of vacant land had a Fair Market Value, after indexation, as on 1/4/1981, of Rs.19,39,092/-. This land was sold on 25/7/2012 for a consideration of Rs.1,10,36,000/-. Rs.50,00,000/- were invested in 54 EC Long Term Capital Gains Tax Saving Bonds of REC & NHAI within 6 months from the sale date(25/7/2012). Kindly advise: 1)What is the amount of Long Term Capital Gain? 2)What is the Long Term Capital Gains Tax payable, including Cess, after considering the investment of Rs. 50 lakhs in 54 EC LTCG Tax Saving Bonds? 3)By which date should this tax be paid, considering that the assesee is a Senior Citizen and hence no Advance Tax is payable by her?

Replies (7)

CA Pooja Agarwal

Chartered Accountant

3228 Points Posted on 05 October 2012

Sales consideration		11036000.00
Indexed Cost	1939092*852/100	16521063.84
LTCG		-5485063.84

Tax @ 20%
SHEC @ 3%		0
tota tax		0
less: exemption u/s 54ec		0
tax payable		0

CA Pooja Agarwal

Chartered Accountant

3228 Points Posted on 05 October 2012

the loss can be carried foward

CA Manish

Job

5264 Points Posted on 05 October 2012

Sales consideration 11036000.00

Indexed Cost of fair value 1939092.00

1. LTCG 9096908.00

2. LTCG after exemption u/s 54EC 4096908.00 (9096908-5000000)

Tax @ 20% 819382.00

SHEC @ 3% 24581.00

Total tax 843963.00

3.Tax is to be paid at the time of filing the return.

CA Pooja Agarwal

Chartered Accountant

3228 Points Posted on 05 October 2012

@ manish- FMV as on 1/4/81 is given..why havent you indexed it..? and exemption under 54EC should be on prortionate basis..may be i am wrong?

CA Manish

Job

5264 Points Posted on 05 October 2012

Originally posted by : CA Pooja Agarwal
	@ manish- FMV as on 1/4/81 is given..why havent you indexed it..? and exemption under 54EC should be on prortionate basis..may be i am wrong?

He wrote that FMV is after indexation and exemption under 54EC is not on prortionate basis. Exemption under 54F is on prortionate basis.

CA Manish

Job

5264 Points Posted on 05 October 2012

@ Pooja

Hope this has solved your doubt.

Originally posted by : CA Manish Malu
	Originally posted by : CA Pooja Agarwal @ manish- FMV as on 1/4/81 is given..why havent you indexed it..? and exemption under 54EC should be on prortionate basis..may be i am wrong? He wrote that FMV is after indexation and exemption under 54EC is not on prortionate basis. Exemption under 54F is on prortionate basis.