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Long term capital gain tax liability

Pradeep SIngh (Article Assistant) (160 Points)

11 October 2013

I had purchased a land worth Rs. 1,50,000/- + stamp duty of Rs.10,500/- on 27.03.2009 and now i am going to sell it on 30.10.2013 for Rs. 3,50,000/-, there is no any improvement cost. I just want to ask that is there any tax liability for A.Y. 2014-15, i have not any other income except interest on saving accounts of Rs. 2,000/- (which is tax free u/s 80TTA). I dont want to invest in 54EC or 54.

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10 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 11 October 2013

LTCG is Rs. 91,050/-

Tax is Rs. 18,537/-

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achyut mishra (student) (28 Points)
Replied 11 October 2013

No tax will be levied since after the indexation effect your profit will be below the basic exemption limit specified at 2, 00, 000.

Neha sharma (-) (1257 Points)
Replied 11 October 2013

Your capital gain is less than the minimum taxable income i.e. Rs. 2,00,000 therefore no tax is required to be paid in this case..

CA Pallav Singhania (IT System Auditor) (33262 Points)
Replied 12 October 2013

Sale Consideration

3,50,000

Less:Cost of Acquition

1,60,500 X 939 / 582

2,58,951

Long Term Capital Gain

91,049

Tax = 18,210

Tax on Capital Gain @ 20 percent

Sundar (Articled Assistant) (85 Points)
Replied 12 October 2013

LTCG attracts special rates with no maximum exemption limit, so therefore from the first rupee of profit onwards taxable @ 20%

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Poonam (CS,Mcom CA FINAL) (512 Points)
Replied 12 October 2013

Tax on long-term capital gains. SECTION 112.

(1) Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is chargeable under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,- (a) in the case of an individual or a Hindu undivided family, [being a resident,]- (i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income ; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent :Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent ;

THEREFORE IF THE BASIC EXEMPTION LIMIT IS NOT EXHAUSTED BY OTHER SOURCES OF INCOME.. THE UNEXHAUSTED AMOUNT CAN BE CLAIMED FROM THE LTCG .. ONLY THE BALANCE LTCG REMAINS TAXABLE AT 20%..

so there will be no tax liabilty in this case as the Capital Gain is below 91049/- which is below exemption limit and there is no other income except Bank Interest which is also tax free..

CA Pallav Singhania (IT System Auditor) (33262 Points)
Replied 13 October 2013

However, The Tax computer of Rs. 18,210

Shall not be chargeable on the hands of the assessee as the Basic exemption limit isn't exceeded...

NO TAX LIABILITY FOR THE ASSESSMENT YEAR 2014-15..

Pradeep Chauhan (Senior Tax & Audit Executive) (21 Points)
Replied 14 October 2013

NO TAX LIABILITY SHOULD BE IMPOSED FOR THE ASSESSMENT YEAR 2014-15

Pradeep SIngh (Article Assistant) (160 Points)
Replied 14 October 2013

Thanx for your replies now i think that tax liability will not be imposed as per sec. 112....

Shah Neelam Kumari Rajkishor (Article) (25 Points)
Replied 20 June 2014

Sir,

I was purched shares(Unlisted) in April 2007. Now I sale shares in march2014. then what the capital gain. Puchasing price Rs. 2500. Saling Price Rs 4500.