Murai Majhi (Service) (55 Points)
12 April 2011dear sir / madam,
on of my aunty (aged about 50 yeas) had contructed a house by investing around 5 lacs around 15 years ago on the plot left by her late husband.
now she want to sell the said house property for around 18 lacs, and plans to deposit around 15lac in a nationalised bank, so that she'll earn interest for livelyhood.
please suggest whether long term capital gain is applicable ?? if so, please suitable tax plannin to avoid huge tax.
kind regards,
murai
vignesh
(B-com CS CA-Final CFA-level 1 candidate)
(1053 Points)
Replied 12 April 2011
Full value of sale consideration=18lakhs
(-)Cost of acquisition=NIL(as given by her husband)
(-)Cost of Improvement(i.e cost of construction)=Rs*711(index today)/index on the year 1995-1996
Captial Gain=watever value comes
CA Chintan Vyas
(Chartered Accountant)
(116 Points)
Replied 12 April 2011
Exemption Available:
Section 54 :- required to purchase residential house property
Section 54EC :- required to purchase bonds.
Refer above sections for details.
Murai Majhi
(Service)
(55 Points)
Replied 13 April 2011
| Originally posted by : G.N.JHA | ||
 |
ANY IDEA ABOUT COST OF LAND/ PLOT |
 |
dear sir,
cost of plot / land is around 8 lacs.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 13 April 2011
8 Lacs land + 5 Lacs development cost 15 years back= 13 lacs
13 Lacs *711/281 ( index of 96-96) = 32.89 Lacs indexed cost of property
net realization is much below this value so its capital loss,
no capital gain tax payable, she can carry forward this capital loss by filing return
CAclubindia
