Capital gains

This query is : Resolved

ravikanth (Querist)
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29 January 2014 My Client has purchased land and building in the FY 2008-09 for Rs.27.25 lakhs by using as factory for his business. He had made additional construction FY 2009-10 Rs.4.69 lakhs and FY 2010-11 Rs.5.71 lakhs, FY Rs.3.00 lakhs. He has sold eitire land and building FY 2012-13 for Rs.55.00 lakhs. Now the capital gain is arrived as follows.
Long Term Capital Gains:
Sale Consideration FY 2012-13 Rs.55.00
Cost: indexed cost (FY 08-09) Rs.39.90
--------
Long Term Capital gain Rs.15.10
Cost of Improvement:
Short Term Capital loss:
FY 2009-10 Rs.4.69
FY 2010-11 Rs.5.71
FY 2011-12 Rs.3.00
------- Rs.13.40
--------
Net Long Term Capital Gain Rs. 1.70
-------
Tax @ 20% Rs.34,000.00
whether it is correct or not

CA Mohit Bansal

CA Mohit Bansal (Expert)
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29 January 2014 Index Particulars Cost Indexed cost Total
852 Sales Consideration
FY 2012-13 5,500,000.00

Cost
582 FY 2008-09 2,725,000.00 3,989,175.26

COI
632 FY 2009-10 469,000.00 632,259.49
711 FY 2010-11 571,000.00 684,236.29
785 FY 2011-12 300,000.00 325,605.10 5,631,276.13
Net Long Term Capital loss (131,276.13)

Hence no tax liability