Income tax on capital gain post tax payment

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Varun Sharma

23 Points Posted on 15 November 2015

Hi All,

Need your assitance.. My dad is a retired person and currently sold his flat at Rs 20L.Here are the details:

1. Purchase Price : 162,675.00

2. Purchase Date: Nov-1989

3. Sale Price: 2,000,000.00

4. Sale Date: Nov-2015

5. Brokarage: 40,000 (but it is to local broker hence no receipt to submit as proof)

6. No other expenses on flat

As per the normal CG tax calculator and taking CII in account, Indexed purchase price is cocming to : 1,022,393.46

Hence capital gain: 20L-10.22L = 977,606.54

and tax with indexation : 195,521.31 (based on20%rate)

Query 1: How much amount I need to deposit in capital gain scheme account to save the capital gain tax for 3 years? Full 20L or 9.77L

Query 2: Do I need to pay income tax on remaining 10.22L that is Indexed purchase price?

Query 3: If I pay my capital tax of 1.95L now , so all remaining amount becomes tax free or again I need to pay income tax on the same?

Regards

Varun

Replies (2)

S. Shiroor

Others

1321 Points Posted on 15 November 2015

1) CGAS - Capital gains Account scheme is a temperoray measure to keep gains so that you purchase a new house or Buy NHAI or REC bonds. keeping in CGAS wont save CG tax.

Only purchase of House or Buying NHAI/REC bonds help you.

You can purchase a house 1 year prior to sale of Old house or 2 years after the sale date.

2) You have to pay tax on gains part only. The indexed cost price is you money [10.22lk].

You need to invest only 9.77lk into bonds or new House.

3) if you pay 20% on 9.77Lk then matter over. As i have told you getting your own money back -so 10.22 lk is your money which you are getting back so is not taxable.