Following are the cashflows for purchase of a property (landed plot)
1. Booking Deposit, 1st , 2nd 3rd instalment paid starting Dec 2014 and ending May 2016 when the plot was registered.
2. Paid property tax staring 2016 to 2025
3. Paid maintenance (with receipts from developer) from 2019 to 2025
How would I compute the capital gains if I sold the property in May 2025 using the indexed cost?The question is the treatment of index calculations of the property through these cashflows. Primarily the payments through the registration and then the property tax and the maintenance fee.
Total payment for (1) including all instalments including registration is 58 Lakhs. Property tax each year stating 2016 is Rs 2600 per year
and Maint starting Mar 2019 is Rs 42000
Also is there any cess and surcharge on the tax thus computed ?
CAclubindia
