Long term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2012 G.M., Sir, I am from Surat,I hv purchased flat in surat in 1997 at a cost of Rs.1.75 Lacs and would like to sold at a price of rs.5 lacs current year, what will be the capital gain tax i hv to pay?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

16 May 2012 The asset is a long term capital asset and accordingly long term capital gain shall be calculated as under:

Sale Price Rs. 5,00,000
Less: Indexed Cost of Acquisition
1,75,000 * CII of FY 12-13/CII of FY 97-98

The balance will be long term capital gain taxable@ 20%

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

16 May 2012 Dear user,

Capital index for the current year yet to be notified by CG.
If we take index as 880 approximately for the current year based on Inflation and consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year.
Capital gain will be-
Sale price- Rs. 500000
Indexed Cost- Rs. 175000*880/331
Long term Capital gain RS. 35000 (Approx)

Please wait for correct CCI.

Upgrade to CAclubindia Pro. Subscribe Now!