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Long term capital gain tax on apartment sale

Tax queries 304 views 2 replies

Hi,

My father purchased a flat in December 2003 for Rs 5,40,000. Flat was registered in april 2006. cost for registration and VAT was Rs 1,00,000.Also we have spent around 2 lakhs for furnishing in the year 2008

Flat was sold in December 2015 for Rs 16,50,000.Based on the indexation, what is the long term capital gain tax my father is supposed to pay. Also my father does not receive any income , so if any tax has to be paid, can it be exempted under the 2.5 lakh basic exemption limit.

thanks in advance.

 

Replies (2)

For computation of LTCG refer the link: https://finotax.com/income-tax/cgcalc

Cost of acquisition: 6,40,000

Cost of improvement: 2,00,000

Exemption limit of Rs.2.5 lacs is applicable for computation of LTCG and anything above the limit, shall be taxed at 20% + Cess

Thank you Poornima for your detailed response. Link was very helpful. I have a follow up question. 1. Should the year of consideration be 2003-2004(year of allotment ) or 2006-2007(year of registration)? 2. Can grill work and wardrobes be considered under cost of improvement?


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