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LONG TERM CAPITAL GAINS TAX

10 February 2021

I purchased a flat for ₹5.10 las in Dec 1998 which is sold in Jan 2021 for ₹23 lacs. How to calculate Long Term Capital Gain Tax. Is investment in Capital Gain Bonds beneficial instead of paying LTCG tax. Please advise. Thanks.

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 10 February 2021

You have to pay LTCG @ 20% by taking indexation benefit. You can avoid such ltcg if you have invested in approved bonds u/s 54EC

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Kapadia Pravin (17264 Points)
Replied 10 February 2021

Apply indexation on cost of acquisition and deduct it from sale value 23 lacs . The difference is long term capital gain.
You can invest into capital gain bonds under 54EC to the tune of long term capital gain.

Subbiah Mathurappan (140 Points)
Replied 10 February 2021

Thanks for the reply. Please further advise me the indexed cost of acquisition or the procedure for calculation.

ajeet singh (1392 Points)
Replied 10 February 2021

Take base year 2001 and basr point 100 and in 2018 base point 280
5.1 lkh multiply by 280 devided by 100
u can add const of improvement also into your cost of acquisition