QUERY OF CAPITAL GAIN

Originally posted by : chetan
	hi One of my client sold a bunglow for Rs 40lacs on 7.5.11 and the cost of acquisition was Rs 33lacs the date of acquisition was 5.5.2009. Please give me the calculation of capital gain and can i get deduction of chapter VI-A. Other information is Income from other sources is 1.5lacs. and investment under section 80c is 50000/- please give me calculation of IT under above circumstances.

as the matter is taxable in current year. wait for cost inflation incex to get published

in rough calculation its short term capital gain ( below 36 month sale)

as other income is 1.5 lacs he can avail 80C benefit upto 1 lac from other income.

thank you

then whats the tax Rate for short term capital gain. appx how much i have to pay tax. can you give me brief calculation of this.

and

what is fair market value?

in your case it would be added to your normal taxable income, wait for indexation chart for 2011-12

stcg                  700000

other income 150000

Gti                     850000

Less 80C         50000

Taxable incme800000

Tax                    92000+cess

why it will go under normal income tax rate there is any rule

Thank you

assumed Cost inflation index for 2011-12 = 800 (final view will get on notified by incometax)

33*800/632=41.77 lacs

sale proceeds = 40 lacs

short term capital loss 1.77 lacs

Tax = NIL

but this is only assumption, let the CII published

One more question

i understood your comment thankful to youi

for my knowledge

if short term capital gain is there then caluculation will be as per normal income tax rate? suppose my gain wud be Rs 5 instead of loss 1.77 lacs.

rs 5/- would be get added to your total income, and would be taxed accordingly

no special rate for short term capital gains , ( except shares on which security transaction tax is paid on sales)

As per section 48 of Income Tax Act Indexation benefit is availabe only in case of transfer of Long Term Capital Asset. Long Term Capital Asset is an Asset which is held for more than 36 months immediately before the date of transfer. Since your client has not held the property for more than 36 months it is Short Term Capital Asset and gain resulting therefrom is Short Term Capital Gain

STCG       700,000 [40-33 No indexation benefit]

IFOS         150,000

GTI            850,000

Less 80C 50,000

                   800,000

Tax will be 94,760

From next time its better you consult a practicing chartered accountant instead of Manufacturer or Exporter

Originally posted by : Alok Siddapur
	As per section 48 of Income Tax Act Indexation benefit is availabe only in case of transfer of Long Term Capital Asset. Long Term Capital Asset is an Asset which is held for more than 36 months immediately before the date of transfer. Since your client has not held the property for more than 36 months it is Short Term Capital Asset and gain resulting therefrom is Short Term Capital Gain STCG       700,000 [40-33 No indexation benefit] IFOS         150,000 GTI            850,000 Less 80C 50,000                    800,000 Tax will be 94,760 From next time its better you consult a practicing chartered accountant instead of Manufacturer or Exporter

thanks for correction

hI Friend

The said bunglow got possession in 16.05.2009 and advance had paid in 12.05.2008. so which date i have to take for calculation.