Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 October 2016 Sir I Have One doubt In Capital Gain.When assessee Purchase The plot in 2005 @Rs.5Crores And He Spent In Charges At 10% At is value.After the One Year He Construct the House For Rs 1crores.This House to Be sales In 2016 @Rs.8.5 Crore And He spent it 2% on brokerage.

How Calculate the capital gain and Cost of acqusition?.

Anand

Anand (Expert)
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19 October 2016 Full Value of Consideration will be Rs. 8.5 Crores
From this reduce the following
a) Expenses incurred on transfer: 2% Brokerage
b) Indexed Cost of Acquisition: 5 Crores + 1 Crore. the 10% spent should be added only if its capital in nature.
Index the cost at respective Indexation factors

What remains is the capital gain.