Please help me solve this problem-capital gains

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CA girl

Article Trainee-CA Final

1942 Points Joined May 2011

Raghav sold gold ornaments on 16-7-2012 for a sum of Rs.10 lakhs, The gold was purchased in 1978 for Rs.60000 by his father.The fair market value of the gold as on 1-4-1981 was Rs. 1 lakh. His father gifted the gold to Raghav on 15-7-12.

He spent Rs. 2 lakhs till 31-7-13 on construction of house property
Deposited Rs. 5 Lakhs on 31-7-12 in capiltal gains accounts scheme
Spent rs. 4 lakhs on construction of house property till the stipulated time.

Compute the capital gains for various relevant assessment years.

Please help me solve this problem.

Replies (3)

CA Kumar Mukesh

CA CMA FINAL and Advance Excel Trainer

6886 Points Joined December 2009

Computation of Capital gain for AY 2013-14

Full Value Consideration	1000000
less: Cost of Acquisition
100000*1222/100	852000

long Term Capital Gain	148000
Less Deduction u/s 54F
Investment in House property	29600
Capital gain A/c Scheme	400000
Net long Term Capital Gain	0

Tranfer made by father to his son covered by Section 49

Please also read conditions attached with section 54F

CA Pallav Singhania

IT System Auditor

33683 Points Joined April 2010

Sale Consideration: 10,00,000

Less: 100000

Cost of Acquisition

(as the father gifted his ornaments to his son on 12-13

so no indexation will be available)

LTCG: 900000

Less: Exemption 54 400000

Less:Exemption CG Scheme 500000

Capital gain NIL

ess: Cost of Acquisition

Read more at: /forum/please-help-me-solve-this-problem-capital-gains-261690.asp#.Ug9Do1NCmho

CA Kumar Mukesh

CA CMA FINAL and Advance Excel Trainer

6886 Points Joined December 2009

Originally posted by : Aryan Singhania (Pallav)
	Sale Consideration: 10,00,000 Less: 100000 Cost of Acquisition (as the father gifted his ornaments to his son on 12-13 so no indexation will be available) LTCG: 900000 Less: Exemption 54 400000 Less:Exemption CG Scheme 500000 Capital gain NIL ess: Cost of Acquisition Read more at: /forum/please-help-me-solve-this-problem-capital-gains-261690.asp#.Ug9Do1NCmho

Deduction under Section 54 will not applicable here since capital asset (gold ornaments) in not residential house property

But Section 54F cover this this transaction & Exemption under this section is 29,600 (148000/1000000*200000) (Amt of Capital gain/Net Consideration Received*Amt invested in New house proprty)