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Long term capital gain

zakir saiyad (proprietor) (39 Points)

28 March 2011

our clents sold his family house which is held by his family before so many years he sold this house in 2009-10 f.y in700000/- half share is his brother in this house how cann i calculate his capital gain plz expert guide me

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9 Replies

Ravi Dasija (C.A. ) (273 Points)
Replied 28 March 2011

Hello Mr. Zakir,

Calculate the capital Gains in the normal manner as prescribed and then divide it in the ratio of the ownership.

Other Views solicited

Thanks & Regards

Ravi

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Sravanthi (CA Final ICWA Final & M.B.A) (742 Points)
Replied 28 March 2011

Originally posted by : Ravi Dasija
	Hello Mr. Zakir, Calculate the capital Gains in the normal manner as prescribed and then divide it in the ratio of the ownership. Other Views solicited Thanks & Regards Ravi

Subject to my Knowledge Ravi is Correct.

siri (CFO) (174 Points)
Replied 28 March 2011

Tax On Sale Of Ancestral property (Income Tax) hiiiiii, see that link u will get clarity.

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zakir saiyad (proprietor) (39 Points)
Replied 28 March 2011

how can i consider his cost of acquisition

siri (CFO) (174 Points)
Replied 28 March 2011

Click on the link given below:-

Tax On Sale Of Ancestral property (Income Tax)

1st sending link not work properly, its work out.

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zakir saiyad (proprietor) (39 Points)
Replied 28 March 2011

thnx siri i got it but i didnt understand why its cost of acquisition ( valuation of 1.4.1981 )multiply by 7.11

Madhusudan Kabra (knowledge seeker) (1779 Points)
Replied 28 March 2011

To get get indexation benefite you are suppose to multiply Cost of acquisition or fair value as on 01.4.1981 with current index .

The logic behind this is ... it will not be fair to charge tax on difference of Current selling price less orignal cost of acquisition. therefore to bring Cost of acquision or fair value to the level of current year's price indexation benefite is given .

Indexation is not 7.11 it would be 711 ( subject to confirmation)

Regards

madhusudan

Ravi Dasija (C.A. ) (273 Points)
Replied 28 March 2011

I agree with Mr. Madhusudan.......

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 28 March 2011

if you are not ready to obtain cost of acquisition then it would be zero , and whole the proceeds ( sale price) would be taxed without any benefit, so better u have to obtain cost price with help of a certified valuer or municipal corporation on specified date.