Query on Capital Gains

Computation of Capital gains for AY 2009-10:

Sale Consideration:                                                   20,00,000

Less: Indexed cost of acquisition:                           13,33,750

(11,00,000*582/480)

LTCG                                                                               6,66,250

LTCG tax @ 22.66% u/s 112                                        1,50,972

Since you have total income of more than Rs. 10 Lakhs (400000+666250), surcharge @ 10% will be applicable. You should pay the capital gain tax in advance as per following schedule:

On or before sep 15, 2008  - Rs. 45,291

On or before Dec 15, 2008 - Rs.  45,291

On or before Mar 15,2008   - Rs.60,390

If you have not paid the advance tax in time, you are liable to pay interest u/s 234C @ 1% p.m or part thereof.

Mere investment in land do not entitle you to deduction. If you intend to construct a HP on the land within a period of 3 years, you can claim deduction u/s 54. Alternatively, you can invest in NHB or REC bonds within a period of 6 months and claim decution u/s 54EC.

You  need not give the details of capital gains to your employer. You can declare the same while filing your returns.

Thank you for your clarifications.  I have sent you one Private Message for some more clarifications.  I am a Govt employee. I see that you have taken my total taxable income as above 10,00,000 (including capital gains).  But, I am taxed at the normal rates on my annual income of Rs.4 lakhs minus applicable deductions u/s 80C, etc.  I have home loan interest and principal repayments for 5 months as also rent paid for 7 months hence my tax excluding this capital gains tax comes to a mere 12000 or so.  Is the capital gains portion to be clubbed again with my income and taxed as I will be paying 20% on the capital gains portion already.  I would be grateful if you could clarify the same.  Thank you.