I've sold a residential plot and need to buy a builder flat. Want to understand the LTCG tax implications. Pls help me by clarifying the following queries:
1- Can we purchase 2 flats or all the proceeds have to be invested in one flat only?
2- How to calculate the capital gains- the plot was bought in 1993 and sold in Apr 2012?
3- What are the expenses (like brokerag etc) that can be deducted from the proceeds to calculate the LTCG tax?
Correct me if i am wrong
1) u can purchase only 1 flat
within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house
2) Cal of LTCG
Sale Proceeds xxx
Less: index cost of acquisition
= Cost*(Cost inflation Index for 2012/cost inflation index for 1993) (xxx)
Less: index cost of improvements
= Cost*(Cost inflation Index for 2012/cost inflation index for yr of imp) (xxx)
Less: Exp incurred for sale of asset (xxx)
LTCG
3) Legitimate Exp incurred in connection with the sale of asset
CCI
Pro
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