Please help compute capital gains and income tax payable

Cost of acquisition = Rs. 586,000 in 2000

Indexed cost of acquisiton = Rs. 12,29,733 (852/406 x 586000)

Cost of construction = Rs. 750,000 in 2002-03

Indexed cost of construction = Rs.14,29,530 (852/447 x 750,000)

Total = Rs. 26,59,263 (12,29,733 + 14,29,530)

Sale price Rs. 65,31,000 (72,00,000 less expenses 669,000).

Capital gain = Rs. 38,71,737 (65,31,000 - 26,59,263)

Capital gain = Rs. 26,71737 (38,71,737 - new flat for 12,00,000)

Capital gain tax at 20.6% = Rs. 550,377 (26,71,737 x 20.6%)

Correct me if I am wrong

Hi Thanks

         Calculation will be as Under

Sales value                     7200000

(-) Salling exp.                   669000

         Nsv                           6531000

(-) Acquiring cost

586000*852 /406           1229734

(-) Improvement Cost

750000*852/447            1429530

LTCG 3871736

(-) Exemption U/s 54       1200000

Net Taxable LTCG           2671736

Tax @ 20%                         534347

(+) cess @ 3%                  16030.4

Total tax Payable                550378                           

Hi

How much gains can be invested in the bonds Is the limit Rs 30 lacs or Rs 50 lacs

Sale Consideration    -       72,00,000

- Expenses                  -           6,69,000

                                             ___________

Net Sale Consideration      65,31,000

(-) Indexed Cost of

     Aquisition                          12,29,734          ( 5,86,000*852/406)

(-) Indexed Cost of 

     Improvement                     14,29,530          (7,50,000*852/447)

                                             ____________

                                                  38,71,736

(-) Exemption u/s 54             12,00,000

                                             ____________

                                                   26,71,736

                                             ____________

Tax liability   26,71,736 * 20.6% = 5,50,377

50 lacs can be invested in 54EC bonds. Lock-in period is 3 years. Rate about 6.5%. No TDS on interest.

Agree With Mihir Sir

AGREED WITH EXPERTS

54EC ...................................BONDS........(NAHAI AND REC)

Hi

Thanks to all for quick replies. Thanks again

No exemption u/s 54EC if the long term capgain is  earned on sale of  RES HP....

According to my view : it will be better  to be made a seprate  sale deed for  plot and house and  than calculate seprate capital gains on both . Now u can compaire your capital gain as per the calculation made my Mihir Sir and others with this approch , May be due to this u can save your some tax .

Is it  possible ?? Please correct me if i m wrong .

cheers

Akram

HUDA rules do not allow separate deed for sale of plot and house constructed thereon

Originally posted by : Mihir
	50 lacs can be invested in 54EC bonds. Lock-in period is 3 years. Rate about 6.5%. No TDS on interest.

But a later reply says that investment in 54ec cannot be made. I am confused, Can someone please clarify