Mrs. A bought a plot for Rs.20,000/- in 2000 and sold it in 2018 for consideration below Rs.6 lakh. What is the tax implication. She has no other income.
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Replies (9)
taking FMV of the plot same as 20000/- on 01.04.2001, indexed cost comes to 84000/- in FY 2018-19.
So, Rs. 5,40,000/- long term capital gain
Less 2,50,000/- as basic exemption ...
tax on 2,90,000/- at 20% will be 58000/- plus 4% cess.
I am not getting that how long term capital gain is rs 540000
Slight correction ,,,, It is assumed that FMV as on 01.04.2001 is 30,000/- and sell value exactly 6.00 lakhs, with no other expenses.
The indexed cost as it is comes to 56000/- so taking roughly as 60K; the LTCG was 5,40,000/-
ok i was thinking that from there you took indexed cost of acquisition rs 84000
As it is indexed cost (20K) .... will be 56,000/-
But with appreciation of (30K as on 1.4.2001) ... it was assumed to be 84000/- ...
Thanks.
I have to thank you for your prompt response. Thanks again.
The long term capital gain tax of Rs.58000/- odd in this case, can we save it by investing in instruments under 80C.
Thank you sir for your response. I also had the same doubt.
whether this tax of Rs.58000/- plus cess can be saved by investing under instruments covered under section 80C of IT Act ?
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