Capital gains

Government has not yet issued notification for CII for 2014-15. However, for rough calculation, I have used the CII for 2013-14 to get a general idea.

Sale consideration = Rs. 60,00,000/-

Less

Indexed cost of acquisition = Rs. 11,49,465/- (497000 x (939/406))

Long term capital gain = Rs. 48,50,535/-

You are required to invest Rs. 48 lacs in another property or in bonds.

TDS deduction u/s 195 shall apply here

Originally posted by : Mihir
	Government has not yet issued notification for CII for 2014-15. However, for rough calculation, I have used the CII for 2013-14 to get a general idea.   Sale consideration = Rs. 60,00,000/- Less Indexed cost of acquisition = Rs. 11,49,465/- (497000 x (939/406)) Long term capital gain = Rs. 48,50,535/- You are required to invest Rs. 48 lacs in another property or in bonds. TDS deduction u/s 195 shall apply here

Thanks for the response.

Please clarify if any rebate on account of Bank Loan Interest, Renovation carried in apartment, annual maintenance, property tax etc can be availed and how it is considered in the above calculation.

You cannot claim bank interest twice. You have already claimed bank interest in your ITR. You may claim deduction for renovation provided it is a major renovation and you have all the bills supporting the expenses. You cannot claim maintenance charges, property tax etc as deduction.

have to disagree with Mihir on the interest part.  you can very much claim deduction for interest paid under capital gains too.  there is no restriction on the same despite it being a double deduction.

Request one clarification on above,

In order to save Capital gains tax, can I reinvest the sale amount in purchase of another flat and avoid TDS completely.

I already have multiple residential apartments.

irrespective of what you do with the money received, TDS will still be deducted.

Originally posted by : Nikhil Kaushik
	irrespective of what you do with the money received, TDS will still be deducted.

Thanks Nikhil.

TDS will be deducted initially by buyer. That is fine.

Can i claim it back after proving that it has been reinvested in residential apartment. Will i be eligible for that since i already have multiple residential apartments.

just to remind you I am NRI.

TDS 1% will not be applicable, instead 20% (sort of Capital gains) will be applicable.

My effort is to find if that can be saved somehow by reinvestment in residential property.