Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Income tax computation

Shubham Sarda (ARTICAL ASSISTANT) (63 Points)

25 February 2014

HELLO EVERYONE,

I HAVE A QUERY REGARDING CAPITAL GAIN. I HAVE PURCHASES A FLAT IN 2004 FOR RS. 4,00,000 AND TODAY IN 2014 IM SELLING THE FLAT FOR RS. 26,00,000. SO WHAT WILL BE THE TAX IMPLICATIONS.?

THANKING YOU,

SHUBHAM SARDA

Reply
Follow
Share

4 Replies

Fenil Shah (Audit & Tax Executive) (402 Points)
Replied 25 February 2014

Long term capital gains chargeable @ 15% with benefit of indexation.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Vikrant Arora (Practicing Chartered Accountant) (67 Points)
Replied 25 February 2014

Originally posted by : Fenil Shah
	Long term capital gains chargeable @ 15% with benefit of indexation.

Don't know what you are reading and writing. Again a article replying just to increase the post count, with wrong and vague reply.

As regards the query, the transaction falls in Long Term Capital Gain, as the period of holding is more than 3 years. Tax rate applicable is 20% with indexation available on cost of purchase. As you have not mentioned the FY for purchase, can't excatly work out the amount (whether 2003-04 or 2004-05). You need to index the cost with year of purchase.

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 25 February 2014

Sale consideration = Rs. 26,00,000/-

Less

Indexed cost of acquisition = Rs. 7,82,500/-(4,00,000 x 939/480)

Long term capital gain = Rs. 18,17,500/-

Tax payable = Rs. 3,63,500/-

you may save tax by availing exemption u/s 54 or 54EC.

1 Like

Fenil Shah (Audit & Tax Executive) (402 Points)
Replied 26 February 2014

Originally posted by : CA Vikrant Arora
	Don't know what you are reading and writing. Again a article replying just to increase the post count, with wrong and vague reply.

Don't why are you behind me but I'm just testing your knowledge !!
Not bad !