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Capital gain

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

14 February 2014

HELLO FRIENDS, CAN ANY BODY TELL ME MY CLIENT RECEIVED HIS SHARE IN ANCESTRAL PROPERTY RS. 50 LAKHS IN CASH AND HE DEPOSITED THE ENTIRE AMOUNT IN SAVINGS A/C

THE PROPERTY COST OF ACQUSTION IS NOT KNOWN, IT IS VERY OLD PROPERTY

3 PERSONS RECEIVED SHARE FROM THIS PROPERTY AND MY CLIENT SHARE IS 50 LAKH.

NOW PLS. TELL ME FOR CALCULATING THE CAPITAL GAIN WE CAN TAKE FMV AS ON 01-04-1981 AND COST OF IMPROVEMENT AFTER THAT.

CAN WE MAKE THE ESTIMATE OF FMV IN 1981 FROM ARCHITECT OR THERE IS ANY OTHER WAY OUT FOR CALCULATING THE FMV.

PLS. HELP ME.

THANKS.

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3 Replies

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 14 February 2014

Yes dear

You are going to calculate Long term Capital Gain hence for this purpose u need FMV on 1.4.1981 hence u can make valuation for this purpose. and accordingly make suitable investment i.e. in Capital Gain Scheme Account or Purchase/Construct/Acquire any building/House Property. so that capital gain tax may be saved.

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RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 14 February 2014

THANKS, FMV IS CALCULATED BY ARCHITECT BUT COST OF IMPROVEMENT AFTER 1981 HOW TO CALCULATE, THEY HAD NO NECESSARY EVIDENCE OF COST OF IMPROVEMENT.

THEY HAD SPENT RS. 10 LAKH IN 1996 AS IMPROVEMNT COST. NUTNO EVIDENCE REGARDING THAT.

PLS. HELP ME.

THANKS.

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 14 February 2014

Dear unless and otherwise ur case is not coming in scrutiny u dont have to show evidence hence now u can file return with self assessment and meanwhile u may obtain evidence from the cliwnt from where u have taken services and made payments. and if u have paid in rural areas then u may obtain their deceleration about the receing of service amount. Might be there is a case of TDS u should also consider of that.

Regards

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