20 March 2010
"(b) if the cost of the long-term specified asset is less than the capital gain arising from the transfer of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of acquisition of the long-term specified asset bears to the whole of the capital gain, shall not be charged under section 45"
Example- Indexed Cost of Acqusition - Rs. 100000 Sale Price - Rs. 1000000 Capital Gain - Rs. 900000 Investment in NHAI & RECI Bonds - Rs. 500000
How much amount will be taxable as capital gain & how much will not be chargeable to tax ?
CAclubindia
