capital gains
This query is : Resolved
04 January 2008
Dear Sir,
Can you please let us know the rate of tax that shall be applicable on profit if a property is sold after 5 years of purchase.
Also can I know that if I have acquired a property 5 years back for Rs 15 lacs, what will be the indexation value beyond which the profit on tax shall be calcualted.
Regards,
HK Malviya
Can you please let us know the rate of tax that shall be applicable on profit if a property is sold after 5 years of purchase.
Also can I know that if I have acquired a property 5 years back for Rs 15 lacs, what will be the indexation value beyond which the profit on tax shall be calcualted.
Regards,
HK Malviya
05 January 2008
You have sold property after 5 years it means there is Long Term Capital Gain
Long Term Means
If The assets held for more than 36
months.
Rate Applicable is 20% and this is to be increased by surcharge (if Applicable) and education cess
Indexation:-
Indexation is relevant to computation of Long Term Capital Gains only. It is applied to computation of indexed cost of acquition and index cost of improvement in respect of capital assets.Cost of Inflation Idex are as under:-
F.Y Cost of Index
1997-1998 331
1998-1999 351
1999-2000 389
2000-2001 406
2001-2002 426
2002-2003 447
2003-2004 463
2004-2005 480
2005-2006 497
2006-2007 519
Suppose you have purchased property in the year 1998-1999 and sold in year 2005-2006 then cost is
15*497/351
Long Term Means
If The assets held for more than 36
months.
Rate Applicable is 20% and this is to be increased by surcharge (if Applicable) and education cess
Indexation:-
Indexation is relevant to computation of Long Term Capital Gains only. It is applied to computation of indexed cost of acquition and index cost of improvement in respect of capital assets.Cost of Inflation Idex are as under:-
F.Y Cost of Index
1997-1998 331
1998-1999 351
1999-2000 389
2000-2001 406
2001-2002 426
2002-2003 447
2003-2004 463
2004-2005 480
2005-2006 497
2006-2007 519
Suppose you have purchased property in the year 1998-1999 and sold in year 2005-2006 then cost is
15*497/351
17 January 2008
Dear Mr Gangwar,
Many thanks for the nice reply. Regards,
Hitesh Malviya
Many thanks for the nice reply. Regards,
Hitesh Malviya
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