Capital gain
This query is : Resolved
30 November 2011
i was purchase a house on02.03.1988 of Rs57000 after that i have constructed ist floor 2700sqft now i want sale the property to Rs175.00lakhs how can i calculate capital gain pl clarify and any other working to reduce capital gain
30 November 2011
Income tax is not levied on Square feet
basis. It depends upon the fact that how much you have spent and what you have got.
.
The Costof purchase as well as subsequent cost of improvement has to be indexed to find out the inflation based indexed cost of the flat.
.
This enhanced value is subtracted from the sales consideration. This excess is Capital Gain.
.
You can purchase another residential house by investing the capital gains amount or more. You will not require to pay Capital gains Tax.
basis. It depends upon the fact that how much you have spent and what you have got.
.
The Costof purchase as well as subsequent cost of improvement has to be indexed to find out the inflation based indexed cost of the flat.
.
This enhanced value is subtracted from the sales consideration. This excess is Capital Gain.
.
You can purchase another residential house by investing the capital gains amount or more. You will not require to pay Capital gains Tax.
30 November 2011
The capital gain will be calculated by reducing the indexed cost of acquisition from the sale price.
Sale Price
Less: Indexed Cost of acquisition
57,000*CII of FY 12-13/CII of FY 87-88
Less: Indexed Cost of Imrovement
Cost of construction of 1st floor*CII of FY 12-12/CII of year of construction.
You can avail exemption under Section 54 of the Income Tax Act by investing the sale proceeds in purchasing or constructing a new house.
Sale Price
Less: Indexed Cost of acquisition
57,000*CII of FY 12-13/CII of FY 87-88
Less: Indexed Cost of Imrovement
Cost of construction of 1st floor*CII of FY 12-12/CII of year of construction.
You can avail exemption under Section 54 of the Income Tax Act by investing the sale proceeds in purchasing or constructing a new house.
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