Income tax computation

Originally posted by : Fenil Shah
	Long term capital gains chargeable @ 15% with benefit of indexation.

Don't know what you are reading and writing. Again a article replying just to increase the post count, with wrong and vague reply.

As regards the query, the transaction falls in Long Term Capital Gain, as the period of holding is more than 3 years. Tax rate applicable is 20% with indexation available on cost of purchase. As you have not mentioned the FY for purchase, can't excatly work out the amount (whether 2003-04 or 2004-05). You need to index the cost with year of purchase.

Sale consideration = Rs. 26,00,000/-

Less

Indexed cost of acquisition = Rs. 7,82,500/-(4,00,000 x 939/480)

Long term capital gain = Rs. 18,17,500/-

Tax payable = Rs. 3,63,500/-

OR

you may save tax by availing exemption u/s 54 or 54EC.

Originally posted by : CA Vikrant Arora
	Don't know what you are reading and writing. Again a article replying just to increase the post count, with wrong and vague reply.

Don't why are you behind me but I'm just testing your knowledge !!
Not bad !