pls advise spose I purchase gold(jewellery) in 2002-03 for Rs. 400000/-wt. 72 tola now in 2010-11 I sold all gold Rs. 1500000/- . How much the amount of capital gain & how much tax would be under section ???????
07 October 2011
Following is the calculation of Capital gains under Section 48 of the Income Tax Act, 1961:
Full Value of Consideration: 1500000 Less: Expenses for sale: 50000(Assumed) Less: Indexed Cost
Actual Cost: 400000 Cost Inflation Index (2002-03): 447 Cost Inflation Index (2002-03): 711
Indexed Cost: 400000*711/447= 636242
Long Term Capital Gain= 813758
To save tax liability, It is advised to made investment in Bonds of NHAI or Rural Electrification of India under Section 54EC or invest in residential property under Section 54F.
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