saifraj (accountant) (61 Points)
12 September 2013Please work out the following capital gain -
Date of Purchase Resi. Hous. Property 10.10.2012 Rs. 120000
Renovation expenses In November 2012 Rs. 10000
Sale Date of above house property Feb 2013 Rs. 175000
I have made construction on my N A Plot up to March 2013 Rs. 500000 (By Housing Loan from SBI)
please answer
1. How much capital gain i have to pay ?
2. how to avoid this gain (any benefit I will receive on new construction on my plot) ?
Mihir
(Wealth Manager)
(5293 Points)
Replied 13 September 2013
Since it is sold under 3 years, indexation shall not be available. Short term capital gain shall be 35,000/-
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 13 September 2013
| Sale Consideration | 1750000 |
| Less: Cost of Acquisition | 120000 |
| Less: Cost of Improvement | 10000 |
|
Short Term Capital Gain |
45000 |
Please note that if the property has been held for less than 36 months from the date of acquisition, the resulting gains shall be termed as short-term capital gains (STCG).
Further, since there is no avenue whereby an exemption from STCG can be availed, the entire STCG shall be taxable as per the applicable tax slab rate.
Mihir
(Wealth Manager)
(5293 Points)
Replied 13 September 2013
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 13 September 2013
@ Mr. Mihir...
I knew that, you just miss typed it....
I've seen most of your replies and learned a lot from it...
Mihir
(Wealth Manager)
(5293 Points)
Replied 13 September 2013
Thank you Mr. Aryan for your compliment.
I think a teacher never stops learning.
I have learnt a lot from this platform, and I am grateful that this platform has maintained its sincerity. Books can teach only little, whereas helping people in need gives us not only the understanding of the subject but we also learn to deal with different people having different problems.
I do like the way you post daily messages of wisdom. Thanks a lot for that.
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 13 September 2013
@ Mihir Sir,
Thank you Sir, for your kind words..
CCI always been a great platform for me..
To have such seniors like Surendra Sir, Paras Sir and seniors like you...
Thanks for your your guidance..
Mihir
(Wealth Manager)
(5293 Points)
Replied 13 September 2013
I am no Sir. I am just like anybody else here.
Look at your scorecard dude, Who is a senior here? 
CAclubindia
