Capital Gains

This query is : Resolved

thanumalayan (Querist)
Follow

01 October 2007 1) Mr X bought a plot of land for Rs. 28,000 on Feb, 1982.
2) He want to sell it for Rs. 6,00,000 during the month of Dec, 2007.
3) What will be the tax he liable to pay?
4) How can he exonerate from this liability? and he can do anything to avoid tax.
5) What are all the documents to produce before the Tax Authorities for buing, selling or otherwise reducing his tax liability?

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)
Follow

02 October 2007 Capital gain is sale proceeds minus indexed cost of acquisition,development expenses and selling expenses. Since long term capital gain it is liable to be taxed @ 20% subject to the other incomes and basic limit. He can get deduction from the capital gain by investing the sale proceeds in residential house. For detailed working visit any nearest tax consultant.