if any land purchased in 1992-93 for 66000/- is sold for 2200000/- and valuation as per stamp authority is 3000000/-.
the assessee is planning to invest 2000000/- in a residential house..
what is the amount of capital gain and under which section the amount should be invested to get exemption.? and the formula to compute capital gain..
kindly advise..with a solution if possible..
thanx..
Hi
Firstly as u said the valuation of land as per Stamp authority is Rs.30,00,000/- as it is higher than the value claimed by assessee, hence as per sec.50C, Rs. 30,00,000 should be taken as the Full value of Sale consideration.
The problem can be worked in the following manner:
Full value of sale consideration 30,00,000
Less:
Indexed cost of acquisition-66,000*519/223 (1,53,605)
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LTG 28,46,395
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Less: Exemption u/s.54F:
28,46,395*20Lakhs/30 Lakhs (18,97,597)
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Taxable Long term capital gains 9,48,798
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Notes:
1. It is assumed that the land is sold during the F.Y. 2006-07.
2. Since the cost of new house is less than the Net sale consideration, he will be getting only propotionate deduction.
With regards
CA Sheela Sreeram.
hi
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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