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Capital gain

Prakash Mali (Artical Assistant) (166 Points)

25 December 2012

Hello... Friends,

Can you please advise on below matter?

I purchased a house in 1997 (before commencement of the project) in Rs. 10 lakhs, which have been paid by me in various installments during 1997-2003 (Say Rs. 100000 on every year ending)(Agreement for purchase is executed in 2003 after payment to developer at Rs. 10 Lakhs), and now I sold the same house in 2012 at Rs. 25 lakhs. Then what will be capital gain and tax thereon? (If i am not going for any investment under capital gain scheme as I have already STCL & LTCL to be set off.). I want to calculate tax amount and wanna know procedure to calculate it.

I also want to confirm that whether I will considered indexation form 1997 to till or I will considered it on payment basis.

Please help its very urgent.

Thanks in Advance for your suggestion.

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1 Replies

NAIR MITHUN MOHAN (ARTICLE ASSISTANT) (77 Points)
Replied 26 December 2012

In Case of Capital Gain the transfer come into effect when u Get possession of that house .As per ur case i think u got the possession in the year 2003.So the calculation is

Sales:25lacs

Less: cost 10lacs*indexation of 2003/indexsation of2012

ltcg/loss:xx

After setting of losses Tax i.e (short term losses can be setoff against any capital gains but longterm losses specifically only with LTCG )will be charged at a flat rate of 20% on LTCG if u r not investing as per section prescripition.