Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2012
I have purchased a domestic private limited company and paid total amount Rs. around 2 Crore in April 2009, the company has only one house property has book value Rs. 20 (purchase by the previous owner in April 1994) Lacs only the indexed cost of acquisition as on day is around 60.61 lacs.

My questions are:

1.What is the value of the property 2 Crore or 20 Lacs, for calculating capital gains.
2. beginning year for the calculation of cost of acquisition.
3. I am not selling company but only building in this company.
4. My Sales Price is 4 Crore.
5. is there any capital gain?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
Follow

27 August 2012 1. Since U have purchased the running business, the deemed value of the house property alone is actual cost to the previous owner i.e, Rs.20 lakhs.
2. The beginning year for calculation of cost of acquisition using cost of inflation index is April, 1994
3,4 & 5. As U are selling the house property of the compnay, there will be Long term Capital gain on sale of building for Rs.4 crores and accordingly liable for LCTG.