05 October 2012
A plot of vacant land had a Fair Market Value, after indexation, as on 1/4/1981, of Rs.19,39,092/-. This land was sold on 25/7/2012 for a consideration of Rs.1,10,36,000/-. Rs.50,00,000/- were invested in 54 EC Long Term Capital Gains Tax Saving Bonds of REC & NHAI within 6 months from the sale date(25/7/2012). Kindly advise: 1)What is the amount of Long Term Capital Gain? 2)What is the Long Term Capital Gains Tax payable, including Cess, after considering the investment of Rs. 50 lakhs in 54 EC LTCG Tax Saving Bonds? 3)By which date should this tax be paid, considering that the assesee is a Senior Citizen and hence no Advance Tax is payable by her?
05 October 2012
Long term capital gain computation:
Sale Consideration 11036000 Less: Indexed cost of acquisition 1939092
Long term capital Gain 9096908
Less: 54EC exemption 5000000
Long term Capital gain for tax purpose Rs.4096908 on this gain you have to pay tax @20% + 3% cess i.e 20.06%. i.e Rs.821840. and this tax has to be pay according to the section 210 i.e payment of advance tax liability otherwise section 234C,234B and 234A interests will apply.
05 October 2012
Sir,I have heard that with effect from 1/4/2012, senior citizens do not have to pay advance tax, if they do not have income chargeable under the head "Profits and gains of business and profession". The amendment was made in the Finance Act,2012. Kindly advise.
07 October 2012
Mr. kapil Tiwari, You are correct. From 01-04-2012 provisions of sect. 207(1) will not be applicable to seniors having age above 60years or more during the previous year and have no income chargeable under the head profit or gains of business or profession. As such will not require to pay advance tax during the financial year 12-13, consequently no interest u/s. 234B/C will attract. Int. u/s. 234A attracts if there is delay in submission of return.
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