parag (individual) (70 Points)
07 December 2015
Stranger
(.)
(5531 Points)
Replied 07 December 2015
Yes, you are liable to capital gain tax @ 20% plus surcharge (if applicable) & cess.
Since you have sold the said flat in the current Year 2015-16, there will be a long term capital gain of Rs.5,99,167/-,worked out as follows, as the period of 36 months from the date of purchase to the date of sale of the said flat already exceeded:
Sales Consideration = Rs. 15,00,000 (assumed to be equal to or more than stamp duty value)
Less : Indexed cost of acquisition
( 4 lakhs × 1081 / 480) = Rs. 9,00,833
LTCG = Rs. 5,99,167
Note:
(1) Purchase of flat assumed to be within April, 2004 to March, 2005 as CII of F.Y. 2004-05.has been considered.
(2) However you can claim exemption of capital gain u/s-54 & 54EC of the Income Tax Act, 1961, if you fulfil the required conditions.
(3) You can also claim exemption of LTCG u/s-112(1)(a), if your total taxable income minus LTCG is less than the exemption limit applicable in your case to the extent as below: Exemption Limit - (Taxable Income - LTCG)
harish sama
(Article assistant)
(81 Points)
Replied 07 December 2015
Yes LTCG is required to be paid @ 20%.However, if you are not having any income other than the LTCG, you can get an addition exemption of 2,50,000 from the LTCG earned. In this way assuming that you are not having other incomes, your LTCG tax liability comes to (5,99,167***-2,50,000)*.20 = 69,833. Eventhough you are having other incomes but less than 2,50,000 you can claim the difference amount as a deduction from the LTCG.
***As Mr.stranger worked out the calculation of LTCG, I did not specificaly mentioned the calculation of LTCG
Minesh Rawat
(Article)
(199 Points)
Replied 07 December 2015
aakash dalmia
(STUDENT)
(91 Points)
Replied 13 December 2015
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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