Income tax

Assuming u purchsed flat in the year 2001-02,the calculations wil be as under

Sale consideration-16.5 Lacs

Indexed cost of acquistion-4 lacs*711/426=(assuming u sell the property in the FY 2010-11)6,67,605. Your LTCG shall be Rs 9,32,394 which will be taxed at a flat rate of 20% i.e Rs 1,86,478.

However from your query it seems u will be selling your house in FY 2011-12,for which indexation rates have not been notified a yet. the above calculation was just to give you a rough idea of the probable tax liability.

Sale consideration                                                                               1650000

(-) ICOA

(indexed cost of acquisition)

(400000*711/426)                                                                               (667605)

Gross Long term capital gain                                                            982395

(-) exemption under sec 54                                                               (982395)

net LTCG taxable                                                                                     nil

note:

1 the py is assumed 2001-02

2 exemption is available u\s 54, if the LTCG is invested in purchase of new residential house property only, and the new hp should be kept for the period of atleast 36 months.

A employee was working in a organisation. Now, he resigned from that organisation n joined other organisation. He withdraw all the dues from that company. Company has paid his Provident Fund after deducting TDS as per applicable.

Can employee may get the RELIEF of that TDS which is deducted over provident fund amount.

Regards

Gajendra Singh

 TRP-T090003107

M-9808268988

i m agree with Ali Akbar

Sale consideration                                                                               1650000

(-) ICOA

(indexed cost of acquisition)

(400000*711/426)                                                                               (667605)

Gross/net Long term capital gain                                                            982395

If u r not going to invest the same as per sec 54...Rs 982395 will be taxed as per the existing taxable rates with an exemption of basic limit.

Originally posted by : Nandini
	Sale consideration                                                                               1650000 (-) ICOA (indexed cost of acquisition) (400000*711/426)                                                                               (667605) Gross/net Long term capital gain                                                            982395 If u r not going to invest the same as per sec 54...Rs 982395 will be taxed as per the existing taxable rates with an exemption of basic limit.

 Absoutely correct. However I am putting a small clarification. Basic exemption limit will be adjusted with Long Term Capital gain only if there is a balance after adjusting the same with the other Income. Say there is a salary Income of 3 Lacs, basic exemption limit will be adjusted with this Salary Income and cannot be adjusted with Capital Gain.