Tax Appplication will be as below
Sales Considereation 8,00,000/-
Less Transfer exp ------------
Net consideration 8,00,000/-
Less : Indexed cost of Acquisition
(18300+5000)*785/305 59 ,969/-
Less Indexed cost of Improvement
5000*785/305 12, 869/-
LTCG 7,27,162/-
Tax on above Income for Senior citizen age between 60-80 yrs.
0-2,50,000 Nil
Tax on balance Income i.e. @ 20% u/s 112B
727162-250000= 477162 * 20% = 95432
Education Cess on Tax = 2863
Total Tax = 98295
U can reduce ur tax by investing Rs.477000/- in any land or U/s 54 EC u can Invest some amount into RECL/ NHAI Bond.
For deduction u/s 54EC u have to take invest in net ratio of sales consideretion...