Long term capital gain calculation

Tax queries 475 views 1 replies

Hi Friends, please guide me how to arrive the Long term capital gain on sale of property below are the details availble from assessee.

1. Land measuring 1200 Sqft (Got it from Father as a gift for Marriage) on January'2009.

2. Building Construction started on April'2010 and ready for residential for March'2011 (Funds from Bank Rs. 33L

3. Cost of improvement (getting 3phase EB connection and other small works in building 1.25L March'12).

4. Cost of Sales 2% brokerage on Sale Value.

5. Sale Value 1.18C

I need to know how much is the capital gain for the above Sale of Asset.

Kindly help me on the same.

Thanks in advance.

Replies (1)

Indexation cost will be in three parts A) Land B) Structure Constructed C) Improvement of structure

Step 1 is to calculated the indexed cost of Land. Since it is gifted to you  three rules come  in   

 a) Date of acquisition by donor is the date of gift receiver - o if your father acquired the land in 1990 then indexation starts  from 1990

 b)  Cost of acquisition of donor (your father) is the cost of acquisition for donne ( gift recipient )   Let us say your father acquired the land for Rs  75000

c)  Indexation from the date of acquisition by the donor shall be taken i.e 1990.   

     so for  land part  calculate the indexation cost.

Step 2 :- Calculate indexation cost on 33lk from 2011 on structure on land

step 3:- Calculate indexation cost on 1.25lk from 2012 on improvement.

Calculate total  indexation cost  step1 +step 2+ step 3 =A

From selling price deduct  brokerage cost and indexed cost  A. 

 

 


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