capital gain problem

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)     

                                                                                              ------------------------

LTG                                                                                    28,46,395      

                                                                                             -----------------------           

Less: Exemption u/s.54F:

28,46,395*20Lakhs/30 Lakhs                                                       (18,97,597)

                                                                                           ------------------------

Taxable Long term capital gains                                           9,48,798

                                                                                         -------------------------

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