Capital gain

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shamkant (Querist)
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23 November 2011 I have purchased house 15 year back & sold now what will be the capital gain. I don’t want to invest in tax saving scheme nor purchased new house. What will the tax liability.

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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23 November 2011 In this case u can get benefit of indexation and balance of capital gain if any will be utilized within a period of 2 years prior to sale or 3 years from the date of sale. You can deposit this amount in capital gain account with a bank.if you don't want to invest or purchase new home then ur liability will be calculated as follows;

Sale consideration
Less; expenses of sale
Less; indexed cost of acquisition
Less; indexed cost of improvement
Balance is capital gain , will be taxed @20% flat rate.

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