deep1976 (propreitor) (278 Points)
10 July 2013
pls guide my mother purchased a plot in 1993 for fifty thousand from saving doing household work ,now due to some financial problem and unavoidable circumstances she is ready to sell for about 8 lacs,what would be the tax liability like,she doesnot have a pan card also
pls explain and how to re invest or use the money.
Mihir
(Wealth Manager)
(5293 Points)
Replied 10 July 2013
Sale value Rs. 800,000/-
Less cost of acquisition - Rs. 50,000/-
indexed cost of acquisition - 939/244 x 50,000 = 192,418/-
Long term capital gain = Rs.800,000 - 192,418 = 607,582/-
Long term capital gain tax = Rs. 607582 x 0.2036 = 123,704/-
She has to invest Rs. 607,582 to avoid paying any tax.
If she does not, then the tax payable shall be Rs. 123,704/-
She can invest in another property or buy infra bonds.
CAclubindia
