Mrs. A bought a plot for Rs.20,000/- in 2000 and sold it in 2018 for consideration below Rs.6 lakh. What is the tax implication. She has no other income.
9 Replies
Dimple Mahatre
(Professional)
(247 Points)
Replied 13 March 2019
taking FMV of the plot same as 20000/- on 01.04.2001, indexed cost comes to 84000/- in FY 2018-19.
So, Rs. 5,40,000/- long term capital gain
Less 2,50,000/- as basic exemption ...
tax on 2,90,000/- at 20% will be 58000/- plus 4% cess.
Vikas Chauhan
(206 Points)
Replied 13 March 2019
I am not getting that how long term capital gain is rs 540000
Dimple Mahatre
(Professional)
(247 Points)
Replied 13 March 2019
Slight correction ,,,, It is assumed that FMV as on 01.04.2001 is 30,000/- and sell value exactly 6.00 lakhs, with no other expenses.
Dimple Mahatre
(Professional)
(247 Points)
Replied 13 March 2019
The indexed cost as it is comes to 56000/- so taking roughly as 60K; the LTCG was 5,40,000/-
Vikas Chauhan
(206 Points)
Replied 13 March 2019
ok i was thinking that from there you took indexed cost of acquisition rs 84000
Dimple Mahatre
(Professional)
(247 Points)
Replied 13 March 2019
As it is indexed cost (20K) .... will be 56,000/-
But with appreciation of (30K as on 1.4.2001) ... it was assumed to be 84000/- ...
Thanks.
prabhuraj
(manager)
(27 Points)
Replied 14 March 2019
I have to thank you for your prompt response. Thanks again.
The long term capital gain tax of Rs.58000/- odd in this case, can we save it by investing in instruments under 80C.
prabhuraj
(manager)
(27 Points)
Replied 14 March 2019
Thank you sir for your response. I also had the same doubt.
prabhuraj
(manager)
(27 Points)
Replied 21 March 2019
whether this tax of Rs.58000/- plus cess can be saved by investing under instruments covered under section 80C of IT Act ?
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