capital gain query

Dimple (Student) (364 Points)

04 June 2011

Hi!

Please help..

Property purchased in Apr 06 for Rs 1271155.00

Constr. Aug 06 & Sept 06 for Rs 505822.00

Constr. Mar 08 for Rs 250000.00

Constr. Mar 10 for Rs 224500.00

What will be the CG if it is sold in 25Lakhs and if in 30Lakhs or above in jun11?

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GEETA MISTRY (ca final Student) (171 Points)
Replied 04 June 2011

there would be long term capital loss

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Arvind Sharma (ACA) (1432 Points)
Replied 04 June 2011

A. If Sale Consideration is Rs. 2500000

Sale Consideration = 2500000

COA = 1271155*711/519 = 1741409

COI = 505822*711/519 + 250000*711/551 + 224500*711/632

= 692947 + 322595 + 252562 = 1268104

Capital Gain/(Loss) = (509513) = Long Term (because period of holding is more than 36 months)

B. If sale consideration is Rs. 3000000

Sale Consideration = 3000000

COA (same as above) = 1741409

COI (same as above) = 1268104

Capital Gain/(Loss) = (9513) = Long Term Capital Loss

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