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Long term capital gain

436 views 6 replies

Ravi

Self Employed

70 Points Posted on 14 March 2018

Dear Experts,

We are 4 brothers. Recently in the financial year 2017 we sold an ancestral property.

Following are the details

Agreement value in 1992 ₹400000/-

Agrement value in 2017 ₹ 3900000/-

Market Value in 2001 ₹925000/-

This property was bought in 1992 & sold in 2017.

Please advise how much capital gain tax each brother has to pay individually.

Thank you.

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212105 Points Posted on 14 March 2018

No LTCG tax liability to anyone, if around Rs. 14 lakhs invested totally in Sec. 54EC bonds, within 6 months of transfer of asset..... (individually around 3.50 L)

Ravi

Self Employed

70 Points Posted on 14 March 2018

Our accountant claims that every indvidual has to invest ₹703000/- in long term capital bonds to avoid tax. How far is this true. Please suggest.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212105 Points Posted on 14 March 2018

Not true. Ask him to calculate LTCG by indexation of FMV as on 01.04.2001.

Ravi

Self Employed

70 Points Posted on 14 March 2018

Sale of Immovable Porperty ₹3900000/4= ₹975000 @ Less: purchase of Immovable Property 100000*272/100 = ₹272000/- Long term capital gain is equal to ₹703000/- This is the calculation of our accountant