- CA Sandeep Kanoi
- | Income Tax - Articles- Featured
- 15 Sep 2019
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Article discusses Meaning of Cost Inflation Index (CII) which is used for Computation of Long Term Capital Gain. Cost Inflation index are Notified by CBDT every year and till date CBDT has notified Cost Inflation Index for the Financial Year 1981-82 to Financial year 2019-20. Cost Inflation index are used for computing indexed cost of acquisition.
What is Cost Inflation Index (CII)?
It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year. Therefore, if we consider that price of a capital asset has risen in tandem with base price rise, then if one want to sell an asset and replace it, the cost allowed even after indexation will be lesser than the price payable for new asset. However, in case of many capital asset the price rise is lesser than market price and in many cases it is higher.
How does Cost Inflation Index (CII) help in capital gains computation? Capital gain, as you know, arises when the net sale consideration of a capital asset is more than the cost. Since “cost of acquisition” is historical, the concept of indexed cost allows the taxpayer to factor in the impact of inflation on cost. Consequently, a lower amount of capital gains gets to be taxed than if historical cost had been considered in the computations.
Formula for computing indexed cost is (Index for the year of sale/ Index in the year of acquisition) x cost.
For example, if a property purchased in 1991-92 for Rs 20 lakh were to be sold in A.Y. 2009 -10 for Rs 80 lakh, indexed cost = (582/199) x 20 = Rs 58.49 lakh. And the long-term capital gains would be Rs 21.51, that is Rs 80 lakh minus Rs 58.49 lakh.
Cost Inflation Index:- Cost inflation index (CII) as notified by Central Government alongwith analysis of the same is as under:
Cost Inflation Index As Applicable From Financial Year 1981-82 To Financial Year 2016-17
| FINANCIAL YEAR | COST INFLATION INDEX | Increase in CII and 75% of percentage of real inflation allowed | Real inflation % of CII Increase allowed / 3 X 4 |
| 1981-1982 | 100 | ||
| 1982-1983 | 109 | 9 = 9% | 12% |
| 1983-1984 | 116 | 7= 6.422 | 8.56% |
| 1984-1985 | 125 | 9=7.7586 | 10.34% |
| 1985-1986 | 133 | 8=6.4 | 8.53% |
| 1986-1987 | 140 | 7=5.263 | 7.02% |
| 1987-1988 | 150 | 10=7.1428% | 9.52% |
| 1988-1989 | 161 | 11=7.333% | 9.78% |
| 1989-1990 | 172 | 11=6.8323% | 9.11% |
| 1990-1991 | 182 | 10=5.8139% | 7.75% |
| 1991-1992 | 199 | 17=9.340% | 12.45% |
| 1992-1993 | 223 | 24=12.060% | 16.08% |
| 1993-1994 | 244 | 21=9.4170% | 12.56% |
| 1994-1995 | 259 | 15=6.1475% | 8.20% |
| 1995-1996 | 281 | 22=8.494% | 11.33% |
| 1996-1997 | 305 | 24=8.5409% | 11.39% |
| 1997-1998 | 331 | 26=7.8549% | 10.47% |
| 1998-1999 | 351 | 20=6.0423% | 8.06% |
| 1999-2000 | 389 | 38=10.826% | 14.44% |
| 2000-2001 | 406 | 17=4.370% | 5.83% |
| 2001-2002 | 426 | 20=4.926% | 6.57% |
| 2002-2003 | 447 | 21=4.93% | 6.57% |
| 2003-2004 | 463 | 16=3.58% | 4.77% |
| 2004-2005 | 480 | 17=3.67% | 4.90% |
| 2005-2006 | 497 | 17=3.54% | 4.72% |
| 2006-2007 | 519 | 22=4.43% | 5.90% |
| 2007-2008 | 551 | 32=6.17% | 8.22% |
| 2008-2009 | 582 | 31=5.62% | 7.50% |
| 2009-2010 | 632 | 50=8.60% | 11.46% |
| 2010-2011 | 711 | 79=12.36% | 16.49% |
| 2011-2012 | 785 | 74=10.41% | 13.88% |
| 2012-2013 | 852 | 67 = 8.54% | 11.38% |
| 2013-2014 | 939 | 87 =10.21% | 13.62% |
| 2014-2015 | 1024 | 85 = 9.05% | 12.07% |
| 2015-2016 | 1081 | 57 = 5.57% | 7.42% |
| 2016-2017 | 1125 | 44 = 4.07% | 5.43% |
In order to revise the base year for computation of capital gains, section 55 of the Income Tax Act, 1961 was amended vide Finance Act, 2017 so as to provide that the cost of acquisition of an asset acquired before 01.04.2001 shall be allowed to be taken as fair market value as on 1st April, 2001 and the cost of improvement shall include only those capital expenses which are incurred after 01.04.2001. Cost inflation index for Long Term Capital Assets sold after 01.04.2017 as notified by CBDT Notification No. 44/2017 dated 05.06.2017–
| TABLE | ||
| SI. No. | Financial Year | Cost Inflation Index |
| (1) | (2) | (3) |
| 1 | 2001-02 | 100 |
| 2 | 2002-03 | 105 |
| 3 | 2003-04 | 109 |
| 4 | 2004-05 | 113 |
| 5 | 2005-06 | 117 |
| 6 | 2006-07 | 122 |
| 7 | 2007-08 | 129 |
| 8 | 2008-09 | 137 |
| 9 | 2009-10 | 148 |
| 10 | 2010-11 | 167 |
| 11 | 2011-12 | 184 |
| 12 | 2012-13 | 200 |
| 13 | 2013-14 | 220 |
| 14 | 2014-15 | 240 |
| 15 | 2015-16 | 254 |
| 16 | 2016-17 | 264 |
| 17 | 2017-18 | 272 |
| 18 | 2018-19 | 280 |
| 19 | 2019-20 | 289 |
Last Updated on 15.09.2019
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We had purchased a N.A. plot of land for Rs,X in 1998 and wish to sell it in 2019. The sale price would be Rs.Y. Could you please advise LTCG liabilities for us? There are no expenses except minor travel/conveyance related (not more than Rs.25,000/-) and brokerage /commissions paid of Rs.Z
If reconstruction takes place in 2012 after demolishing old structure build in 1985, can the value of old structure, after deducting depreciation, be claimed for arriving at Fair Value as on 01.04.01 for calculating LTCG for sale in 17-18. Completion of construction being March 14.
PLEASE HELP TO EVALUATE A RESIDENTIAL BUILDING CONSTRUCTED IN 1981 BY CII OR ANY OTHER METHOD.
Sir,
Please explain how to arrive the construction cost of a residential building constructed in 1981 using Inflation Index (CII) if possible, or Pls explain the valuation method to arrive the cost of construction of such a building.
OFFHAND
The subject Notification seems to be faulty in two respects:
(A) The Index for FY 2016-17 has been fixed much before the year end of Mar 31; which is not in accordance with the basis sec 48 provides.
(B) The base year has been changed from 1981 to 2001, but the old Index for 1981 been left untouched. So much so, property acquired before 1981 , if now sold, will, it appears, be denied the tax benefit on an amount equal to the Index for 1981.
Any scope for a different / better perception on the foregoing observations ?
OFFHAND
The Notification has prescribed the Index for FY 2016-17, prematurely, much before the year end of Mar 31, 2017 itself; unlike , as in the past, much after the end of a previous year. It is unclear, rather questionable, – how then the Index so fixed for FY 2016-17 could be claimed to have been computed strictly as per sec 48 ?
I have puchase a plot of 126 yard ( approx Registered amount Rs 150000/-) in year 2000 and constructed 2 storey over it in year 2000( ground floor) and 2005( 1st floor). Please suggest at what price we have to calculate the construction cost in year 2017 if we sale this house so that no income tax is liable on me.
We bought a plot in 1970 and then constructed 2 storey. Area 900 sq.ft. The ground floor constructed in 1975 and 1st floor constructed in 1990-91. Sold in 2017. How to calculate the capital gain
I am selling the commercial open land of 1500sqft.which I got from my grandfather purchased in 1978,40,000sqft for approximately 10000/now I want to purchase agricultural land in rural areas, what will be the capital gain tax that I have to pay.
Cii applied on commercial property
Cii applied on sale of commercial property
My father bought a land for rs.26000/(2acre) Now it worth five crore.If I construct flats what will be the capital gains tax I have to pay? Whether it is single payment or one has to pay at the time of selling each apartment.land year of purchase 1979 and year of sale will be 2016.
Sir casin sold a piece agricultural land situated within 8km form municipal limit to a ltd developer in Chandigarh @41200000/acre with a unregistered sale agreement in DEC 2013 & received all the amount in July 2015 and handedhandedover the possession to dedeveloper.can he claim the capital gain tax
Dear sir,
What will be cost inflation index for the year 1974-75? How will the capital gains tax liability will be calculated if a property bought in 1974 is sold in 2014?
Already I Purchased land 2011-12 But not accounted income tax filing. If possible to account it now or in this financial year.
Plz reply me. Sir if today i sale a house property of rs. 35 lakhs What. Will be inflation or actual value of house in next 4. Years says in A.Y. 2020-21. The propert is at urban area
Hi Taxman,
I purchased a land costing 50,00,000 in 2011-12.cost of improvement Rs 30,00,000 in 2012-13,i given that land to one partnership firm for further development,i incurred 10,00,000 expenditure for that.can i claim that 10,00,000 as an cost of improvement? now i am divided that land into 130 plots.sold each plot 2,00,000 in 2015 may.but government value for each plot 2,50,000.what will be he capital gain? and what about that 10,00,000 expenditure?
Land purchased on 13/9/1991for 60000 want to sale now for 5000000(fifty lakhs).what will be capital gain tax
Sir,
I have purchased a house in Lucknow in 1996 for Rs. 1.82 lacs & get it registered in 2015 forit’s original cost of Rs 1.82 lacs. Now I am selling it for Rs.49 las. Now I want to know that how can I save the capital gain tax on it and how mumuch. OR if I will purchase a house at gurgoan for my son in joint name for Rs. 35 lacs. Than how much tax I have to pay.
What will be the inflation index for a property purchased by my father in 1956 for calculating capital gains tax in india?
i want to now dhukeswar darden, sardar patel marg, jaipur dlc rate since 1981 for income tax case
I purchased a flat in 1996 for 40000rs and sold it in 2015 for 1200000rs
how much tax will i have to pay.
Read after i’ll w’ll srprse now and thnk u.
I purchased a plot worth rs 225000/- in the year 2004 and later on i constructed a bungalow over it in the same year, which cost me rs.1250000/-. i have proof of my land purchase document,but i don’t have any details of construction work done(i.e.1250000/-)
How to calculate my gain tax for the year 2014-15 if i have sold this property for 7500000/-
my agreement value of flat is 88lacs
stamp duty paid is 1795000
registratin fee is 73350
other exps such as scanning fee is 19000
yr of purchase is 2005-06
what is index cost of acquisition???
Hi tax guru:-
My father bought house in Feb. 1975 at Rs. 25,000/- and now we are selling on 25 feb-15 at 98,00,000/-lacs. How much will be capital gain and how much capital gain we have to pay?
My father bought house in Feb. 1978 at Rs. 37,000/- and now we are selling at 98,00,000/-lacs. How much will be capital gain and how much capital gain we have to pay?
like the tax book
How to calculate the capital gain for property purchased prior to 1981-82?
I booked a flat in dec 2004 and paid Rs 5 lacs as first instalment. thereafter the project was delayed. I was finally given possession in june 2013 for Rs 37 lcs including the Rs 5 lacs paid in 2004. I spent rs 2.50 lacs on regn and 15k on legal fees. what is the total coat of purchase? I executed sale deed in june 2013 and now want to sell . is it short term capital gain or long term and what is the purchase price for tax purposes.
My mother purchase a property in oct 1988 @ rs 70000/-
sold on 24/03/2014 @ Rs 38lac ( govt Value 39.07 lac)
registry expenses bear by me rs 195400/-
pls calculate capital gain tax
dear sir, i bought aflat in 1981 at 58000 and sold it in 2014 at 12 lkhs,( in 2007 i spent rs. 1.5 lakh for improvement, lost receipts) how much capital gains tax i have to pay and when?
The house bought my father was at the cost of Rs 17000 ( SEventeen thousand) in the year 1977 and if it is sold at a cost of Rs 7,00,000 ( 7 lakhs ) now in 2014 what would be capital gain and the amount of capital gain tax?
Please let me know the tax amount.
Just for Example
Name-A bought a land in 1960-(“A” not remember Price of that property)
Name-B sold it in 3,00,00,000
How much capital gain should they pay
Sir,
My father purchased a land at 4000/- in 1975, invested on improvement and built a residential house where we stayed years togethers. On our parents demise myself and my only sister sold the land (demolised house) in three parts at a total of rs 45 lakh in 2014.
What will be our tax and how to calculate the amount invested by my father on improvent of the land.
Thanks.
sir I buy a residential land in 2010 for 8 lac
I sold it in 2014 for 11 lac
what will tax
sir,
actually during the f.y. 2013-14 my client sold gold ornaments which were purchased in 1985-86 but purchase price is not known..bill of purchase is missing. how long term capital gain will be calculated. please suggest me.
Dear Sir
I have purchased a plot at Mysore for Rs.1,75,000/- in 2006-202-07. I want to sell and I am getting an offer for Rs24 lac. Will I have to pay any tax or without tax can I deposit in National Bond. Please advise me. Thank you sir
Hello Sir,
I purchased an apartment in 2012 sep. builder delayed the possession from 2013 to 2014 Nov. this is still under construction.
i plan to sell it asap for 77 lakhs. original cost of the property is 53 lakhs. on todays date i can close the loan by paying 38,40,000 to the bank. what will be the capital gains tax that i need to pay. in case i am not investing again on my name but giving the profit money to my friend who will buy a property on her name. will i be still taxed? how much will that amount be?
whats the best way to mitigate the tax affair?
Please advise.
Best Regards,
Chandan
it is a coommon doubt,
wether 10% tax option on the capital gains
without doing indexation
is available or not…
when a old house/flat is sold recently say in 2013/2014,
which was purchased long ago, say in 1980.
please reply.
Hi Sir,
I am buying one 40 years old house and dont have proof of its age.
How to get reduction in stamp duty as it is very old house.
I took a residential property @ 16.5 lakhs in 1997-98 in Mumbai. I want to sell now at 3.20 crores.
I want to buy a residence for 2.20 crores.
What will be tax liability ?
For a land property received as gift from mother, how much capital gains tax I have to pay for the proceeds received if I sell the land in the same month I received the land.
my father purchase a residential plot in 1987 and registry is done in 2006 by the society,and sale the plot in 25 lakh,my father is a farmer,does any kind of tax should be paid ???
I have sold property to Rs. 3000000/- in 7 April 2014 which was purchased a Semi construct house property from a society in 2003-2004 Rs. 440000/- and
cost of finishing in 2004-2005 Rs. 122600/- and
Cost of improvement of house 1st & 2nd Floor in 2005-2006 Rs. 617400\-
Stamp Duty,Registration Fees and Legal Expenses in 2012-2013 Rs. 77000\-
and I purchased Residential Plot against above Property Rs.750000\- and Stamp Duty,Registration Fees and Legal Expenses Rs.50000\-
Kindly let us know whether I am liable to pay any tax.
my father gets a land from his grand father before 1/4/1981 now he want to sell it.
please tell me how to get FMV of land on 1/4/1981.
Hello Sir,
I need to know the then prevalent market value/government rate of a land in Kolkata 1982, where and how I can find it. I have market value estimated in 2009.
Thanks
I bought a house in march1989 for 5 lakhs/ I sold it for 1 ctore in march 2014. what will be my capital gain tax
(a) with indexation and
(2) without indexation (If permitted).
Other than this transaction I have a annual taxable income of Rs. 4 lakhs by way of pension and interests on FDs
sir,
I want to ask that for what period indexation has been made if the capital assets has been disclosed in VDIS scheme of the Government which was initiated in 1997. I would also like to add that what if assesse does not have any invoice and purchase record of the above mentioned capital assets.
whether indexation will be allowed on a property purchased in installment basis yearly on the payment of each installment or will it be allowed when the property is transferred at the end of the payment. please clarify and support out with case law if any??
Dear Sir
I am a Sr. Citizen and purchase a flat in Noida Sec – 82 in the year 2001 @ 1,88,000/-. and only a single flat is in my name.
At the time of sale someone is offering me to give me 20,00,000/-
I don’t have any PAN Card.
Is there any tax liablity to me on the sale of this flat.
Thanks
Kusum Lata
I wants know about sale of Residential Property.Case is as under.
Property purchased on 21/02/2000 @ 394500
Going to sale, in this month @ Rs.15,00,000/- by sale deed
is it possible to sell property below ready reckoner value ?
Further I will purchase new flat against sale of old flat, agreement value would be above Rs.50,00,000/-.
Kindly let us know whether I am liable to pay any tax.
My father purchased a land for Rs.11060.00 1968 and further build a residential house for both own use and rental purpose in the yr 1972 spending Rs.115000.00 and further did alteration in the yr 1995 spending 125000.00. Now, after his death we (me and my brother) want to sell. Offer price is Rs.1.00 cr. Can you please give the cost as per CII for the yr 2013-14.and net long term capital gain tax implication and the way to get exempted from pay LTGT.
sir
I purchased a site at Bangalore in the year 1980 for Rs 7700/-. I built a ground floor in the year 1989 at a cost of 2,25000/-. I built the first floor in the year 1992 at a cost of Rs 250000/- Since the constructions were made by me using the labour contract There are no records to submit. There is an offer of 90,00000/- for the property. Pl let me know what will be the capital gains on the sale and also let me know the ways to avoid capital gains. Further is there any measure to calculate the inflationary value in this case
sir
I purchased a site at Bangalore in the year for Rs 7700/-. I built a ground floor in the year at a cost of 2,25000/-. I built the first floor in the year at a cost of Rs 250000/- There is an offer of 90,00000/- Pl let me know what will be the capital gains on the sale and also let me know the ways to avoid capital gains
WHAT IS CAPITAL GAIN & WHAT IT APPLICABILT
IS CAPITAL GAIN CHARGE ON SHARES ,GOLD ,PROPERTY , AND WHAT OTHER COVWERD UNDER IT. AND ITS RULES
Dear Sir,
i bought a a 300 sq.ft flat for Rs.21000.00 in 1975 in Kalyan-MH
Now I want to sell it say for Rs.15 lakhs. How much tax I may need to pay?
I have no pension & Where Can I invest the capital gains for my future source of Income.
Pl do advise.
T&R
JJoshy
Purcahsed Property on 31 Dec 2009 @ 700000/- including all stamps and other exp.
sold that property in 19 Dec 2012 @ 2500000/-. ( Not even 3 yrs completed).
what would be my tax???
Dear sir: In FY 2012-13, I have sold a house property that was constructed and related costs of construction incurred over 8 years in a distributed manner during 1980-81 to 1989-90. For assessing capital gains tax in this case, is indexation of capital cost of acquisition to be done year-wise for each year’s cost incurred by applying the index factor for that year and summed up over all the years or for the cumulative cost of acquisition in the year of completion of construction by applying the index factor for that one year only ? Thanks in anticipation of your early clarification:
Dear Sir,
I am Sr. Citizen and annual Income is Rs 5 lac p.a.
I have purchased a residential flat in Noida in Feb 1994 at price of 4.57 Lacs.
I want to sell it in Nov 2012 and purchase commercial property in Noida.
The sale price is Rs. 65 Lacs & new comm property is for Rs. 66 lac.
What capital gain tax I have to pay ?
Can I save capital gain tax by investing in capital gain Bonds ?
Thanks
sir what is the cost inflation index of financial year 2012-2013 ??
if purchasing a old house say 25 years old then how indexing will be done
what would be probable cost index for year 2012 -13 .
when it will officialy publish .
Capital Gains
In the year 1999, I had bought a flat in Bangalore. This was bought on loan thru HDFC. While I paid all the monies (initial and EMI), it was bought in the joint name of my husband and me. As it stands, the flat is free from all loans and is jointly held by us.
Additionally, I have recently inherited 2 floors of a lease hold property (plotted house). Though the property is more than 25 years old, I have only inherited it 6 months ago. This is a 3 floor property and is located in NCR.
Recently, a builder has approached me and offered to rebuild the property after he has acquired a floor (i.e. excluding my 2 floors) from my brother. He is suggesting that we collaborate and rebuild the premises at his cost as per the current bye laws. In lieu of this he has offered me 2 floors and some consideration (vide cheque). Currently, I stay and use both the floors of this property.
My questions are:
a)
If I enter into this deal, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it as I also own a flat in Bangaluru.
b)
If I enter this deal and sell one of the two floors (i.e. retain only one)and then within the next few months buy another residential property equal to the sale price of one floor and cheque consideration, will it attract short term or long term capital gain? If yes, how can I save it as I also own a flat in Bangaluru.
c)
Should I sell my Bangaluru flat, will the consideration received by me from the builder still attract long term capital gain tax? If yes, how can I save it ?
d)
Should I gift/relinquish my Bangaluru flat to my husband, will the consideration received by me from the builder attract long term capital gain tax? If yes, how can I save it ?
In short, what is the best option to save Capital Gain tax while keeping the transaction in cheque? (I also understand that the assessee should not own more than one
residential house other than the residential house in which he
has invested as on the date of transfer…This is bit confusing)
I want a clarification regarding the Indexation benefit applicable for the following securities.
I had bought a structured product ( Secured Redeemable Non convertible debentures) on 29th August 2008. These securities were listed on the BSE. The redemption date was on 29th Nov. 2011. The redemption value was on Par. The interest on the debenture was linked to closing level nifty compared to the opening Nifty.
Can we claim indexation benefits for the interest paid on the debentures ? If not what would be the applicable taxes on the interest ?
Thanks for your response.
Sir,
I have purchased a land in Aurangabad, Maharashtra in the year 1989-90 valued Rs. 94,260.00. Now I have sold it for Rs. 37,72,000 on today 17.07.2012. Please let me know Which Cost Inflation Index is applicable for Capital Gain and how much Tax is to be paid. At which date I have to pay Capital Gain Tax.
Thanks.
I purchased a flat from builder in 10/2/2005 for 23,81,000/- in Bangalore but and as practiced by most builder it was registered at 8,87,056/- at govt value. I have the documents for both.
Now on 15/03/2012 I sold the flat for 45,00,000/- .
I have also purchased another flat and paid around 20,00,000/- as part payment to the builder for the new flat so far. According to sale agreement I will get the flat registered in my name in 2014 which is under construction now. However an agreement of sale is already signed with the builder.
Q1. What should be the Cost of acquisition of my previous flat (the full purchase value or the registered value)
Q2. I did some improvements on the flat and spend around 2,50,000/- but I do not have any receipt of the same can I include it in the cost of improvement.
Q3. As I had sold the flat on 15/03/2012, do I have to declare capital gain in tax return to be filed by 31 July 2012 or next year as I have 6 months time to reinvest in another flat.
Q4. As my new flat will be registered in my name in 2014 which is under construction now, is it a valid property reinvestment which I can show now.
I wants know about sale of Residential Property.Case is as under.
Property purchased on 2004 @ 6,00,000/- –
Going to sale, in this month @ Rs.15,00,000/-.
Kindly let us know how much tax liable to pay
urgently
Hi, I bought a flat in Oct 2007 and sold it in June 2012. After purchasing the flat I got some work done but I do not have any papers to show the amount of expense incurred. How to include that expense into my cost for the calculation of CG? Also I am about to get the registry done of another flat which I booked 3 years back. I would be paying the balance to the builder in 1 year time. Is it necessary to deposit the CG proceeds to the CG Account till then?
My father purchased a land in 1971 for INR 1000. He expired in 1993 and my mother expired in 1994. I want to sell the property now. what is the indexed price of aquisition and what would be the impact of Long Term Capital Gains on the Proceeds of the Sale.
I hope this is going to assist me the long way in the study of taxation, Thank you for your knowledge
Can somebody tell CII for the year F. Y. 2012-13? If I am selling a property woth next month, the Cost Inflation Index of the current year i.e. 2011-12 will be applicable or 2012-13
I HAVE ENTER INTO AGREEMENT IN 14.08.2001 FOR PURCHASE OF FLAT FOR RS. 1202793.00 AND TOOK POSSISSION ON 04.05.2003 NOW SELLING FOR rS. 10000000.00
WHAT WILL BE MY TAX LIABILITY
suppose I purchase flat in 2007-2008 for 40 lacs and paid Rs. 10 lacs in 2010-11. I sold the flat in 12-13 for 80 lacs. Now shall i get indexation benefit on Rs 10 lacs for calculation of long term capital gain. How the long term capital gain shall be calculated
Sales proceeds 80 lacs
Less indexed cost
50 x indexation
10 x ??
Total Cost = ??
i book a house in R.D.A. in1987 on an emi of rs. 5000/- per month & final registry done on 1997
the total cost of purchese is 750000/- now i sold this on 2200000/- what is the capital gain & what is incom tax on that
cost infialation index FY 2012-13 AY 2013-14
Dear Sir,
We have sold a property for Rs1600000 on 30th march 2012 and had acquired the possesion in the year 2003 as gift from my grandmother .We are not aware of the property value when we aquire this prpoerty but can tell you nits valuation in the year 1989 -90 was 104400 for 100 sq.ft.Can you please help me finding the value of this land and tell us weather we have got a capital gain or not.and if we dont have any capital gain than can we invest this amount in FD’s to get interest income.
sir i want to know that if a man sales and purchases the property in a financial year 3-4 four times dn how the capital gain tax will effect.
WE HAD AHAVELI OLD MORE THAN 80 YRS IN HARYANA PURCHASE PRICE DON’T KNOW SOLD IT IN FEBUARY-2012 IN 6 LACS DIVIDED IN THREE PERSON 2 LAKH EACH HOW MUCH WILL BE LONG TERM CAPITAL GAIN HOW MUCH TO BE INVEST IN 54 EC BOND-REC/– NHAI IS IT NECESSARY TO INVEST. AT PRESENT AMOUNT IS IN SAVING ACCOUNT PLEASE ANSWER AT EARLIEST– AT PRESENT I AM NOT COVERED UNDER INCOME TAX MY ANNUAL INCOME IS LESS THAN TAXABLE AFTER GETTING REBATE ON INVESMENT RS-1 LAKH
circle rates under noida authority in 1981-1989 ..
I purchased a PLOT in Nov 2000 for Rs 72, 000 & incurred lease rent Rs 25000 upto 2011.Now i want to sale the same PLOT in march2012 in Rs 10,00,000 . what will be the capital gain tax i have to pay now. Kindly advice.
i have paid my 1st & 2nd installments of 15.09.11, 15.12.11 regularly. on 15.03.12 i have to make 3rd installments, but in `E’ payments the bank`s is not allowing me a payments of Rs.54 lac which is my 3rd installments payable by me on 15.03.12. Can i make this in two breaks or not before 15.03.12? Please clearify.
one of my client has sold his half property in January1981 for Rs.26 lacs and other half was to get constructed at Rs.100/- per sft.by the purchaser.Due to some problem the purchaser did not honour the terms and conditions of the agreement.Again in the year 1992 the property was sold to Z (by the 1st vendor and the 2nd vendor).Due to lower valuation the IT Dept.acquired the property.The acquisition was challanged and pending the acqusition ( acqusition provisions were repealed)the property was sold to another party in the year 2006(by both the vendor) with the understanding of Z.Now my question is what is the value of cost for the 1st vendor.Please note that eventhough the 2nd vendor is a party to the final agreement of 2006 he never became the owner to claim any cost in the computation.
KINDLY EMAIL OF IMPORT MACHINERY ENTRY
I HAVE PURCHASE SHARES AT VALUE OF RS.1200000 RATE PER SHARE 30 PURCHASE DATE 12/01/2011.
I SOLD THE SHARES AT VALUE OF RS.17,07,433 OF 10400 SHARED. SALES DATE 24.01.2012
KINDLY LET ME KNOW THE CAPITAL GAIN
Dear Sir,
I would be grateful if you could provide the answer to my following query
.
a) My grandfather purchased a plot 60 years ago and Constructed a house on it.
b)He died intestate and later after almost 40 years after his death(died in 1965) there was release deed done in favour of one of the children of this person with mutual consent of the rest of the children c). The present owner( in whose name the release deed was made) would like to dispose this plot as per current market rate . For Eg: Say the Total Consideration received would be around 50 lakhs.
d)For Calculation of Indexation how would the Price for Purchase Calculated and at what rate .( If initial purchase price records are not avialable then what will be the price ) Thanks for answering my query
I had purchased a property with small house in 1983 for RS.50,000.
In the year 2006 I demolished the house and built a new house with 2600 square feet plinth area and at a cost of 23 Lakhs. In 2012 I disposed the property for RS.35 Lakhs. I want to know what is the capital gain for this deal.
Many of us have raised important question which is what if the property purchased before 1980 (say ancient property purchased in 1965 at 1000 Rs) how CII will be calculated or benefited at the inflated property selling price in 2012? (say 2012 current cost is 20 lakhs)
@Although few people said that CII prior to 1980 will remain 100 but how true is it? Is there any notification / proof available online? Even If I assume for moment that’s true than the property purchased in 1981 will get highest tax benefit compared to person who has purchased property in 1965 say for 1000 rs? That’s absolutely ridiculous !
I will really appreciate right advice / help
Dear Sir,
First of all thanks for your time.
Question : I purchased a residential plot in 2002. The price per government records / registration price was much lower than the actual price paid to the seller (market value).
If for Tax purposes, I have to go by the Government Rate / Price, I will end up paying more tax than what I actually owe. My question is, which of the two amounts (Government valuation or Market Price) will be considered as “Cost of Acquisition” for Tax calculations?
Thanks in advance for your help.
Best Regards,
-Bala.
My father purchased residential property in 1995-1996 for Rs. 5 lacs, now we are planning to sell this property for Rs 20 lacks. The sale amount i.e. 20 Lacks will want to give the gift to my sister for purchasing new property , she is married and her husband want to buy the new property in his own name, then in this case kind help
1) How much capital gain tax will be charged to my father ?
2) How to save capital gain tax ? 3) whether any tax to my sister ?
I have purchased flat in 2004-2005 for 22 lacs + house improvement exps of 3 lacs = total 25 lacs. I am not planning to sell the flat now for 30 lacs.
I want to know what is the cost of indexatation for my flat in 2011-2012.
Also if I am selling for 30 lcas, then will it be loss of property ? If so, can I claim tax benefit in 2011-2012 for this loss on property?
sir/madam,
i have purchased a house in 1990 @ rs 500000. and brokerage charge 1 %. at the time of finding CII, the cost of acquisition will be 500000+brokerage or only 500000????????
Sir
I have already a house since 1995 in ghaziabad. Got allotted a plot in Noida by authority in 2001, made payments in installment up to 2007. Registry in 2007 value approx 6.00 lac . Now wish to sale the plot of Noida value 45.00 lac approx . and wants to buy a flat value 60 lac . Is long term capital gain applicable ??
I purchased a plot in1995 for Rs 50,000/-, Registration-4,500/-; then spent 20,000/- for filling and demarcation(I have no proof of payment except payment voucher on plain paper) then Rs 10,000/- on boundary wall erection in 2001;If i sell it for Rs. 5,00,000/- what is capital gain
Harjit
i have sale my enssestal property which purchased in 1969.but we our selling it in 2011.the circle rate of that land in1981 is rs80per sq met.and today its circle rate is rs.3360per sq meter than what capital gain we have please tell us if u can .thanks,sangeet raebareliy.
dear sir,
i was surrender my LIC’s market plus bonds,
i was invested as on 31/10/2007.
i was surrender as on 30/04/2011.
is it taxable? if taxable what the capital gain and tax amount.
give tax planing for tax saving.
I HAVE PUCHASED A FLAT IN 1987 FOR RS 277500 WHICH IS SOLD IN 2010-11 FOR RS 3105000 . PLS TELL ME HOW MUCH TAX I HAVE TO PAY
Dear Kunal
This problem is related to long term capital gain .you have not specified the date purchase . I am assuming you have purchased after 31st march 1987 that time cost of index was 150 and index 2010-11 is 711
As per capital gain tax
Sale value consideration 3105000
Less cost of acquistion
711/150 * 277500 = 1315350
Less cost of improvement= Nil ( you have not specified in you query)
Less brokerage and other cost
———
capital gain 1789650
you save tax take the help of sec 54,54EC,54 F
As you have not specified clearly many thing i am unable to give advice
my parental house was built in 1978 for rs 65000, parents passed away in 1993
the house was transferred on my name in 2009 and sold in oct 2011 at rs 25 lacs, Kindly advise capital gain will be calculated from 2009 or 1993 or from 1978, I have showing in income tax return rent received from 2004
Capt. Chawla
Cost to the previous owner become cost of the assessee .Therefore, cost of index 1981-82 is taken as base index (ie) 100. current index 785 .your capital gain will be as follows
Sale value consideration 2500000
Less cost of indexiation
785/100* 65000 510250
Less cost of improvement Nil ( you have not specified)
Less cost of transfer Nil ( not specified)
———–
Capital gain 1989750
————-
To save tax apply sec 54, 54EC , 54F
Sorry captain
I want to rectify my mistake
according to central govt notification cost of inflation index for the first year in which the asset was held by assessee or the year beginning on April1,1981 , whichever is later
According to the above statement your idex will be 2009 not 1981 year index 100
pvt ltd can avail index cost capital gain COST INFLATION INDEX
Hi,
I have purchased a plot 1.6 Lakh in 1988 and constructed the house for 20 lakh in 1995-96. Now, I have sold the house for 72 lakh couple of weeks back and purchased another house for 35 Lakh. Do I need to pay any long term tax?
Regards,
-Simran
sale of agriculture land in the name of HUF Tax liability
WHAT WILL BE THE INDEXATION VALUE FOR PROPERTY BUILT IN 1974-75, FINANCIAL YEAR? IF THAT PROPERTY WERE TO BE SOLD TODAY, PL INFORM WHAT IS THE METHODOLOGY TO BE ADOPTED TO COMPUTE CAPITAL GAINS ON SALE IN 2011.
THANKS
Dear Ravi,
The cost inflation index will remain 100 for years prior to 1980-81.
regards
Gaurav
This is a good article. However, it would have helped if the author had mentioned in the article the likely changes in the provisions, when the Direct Taxes Code is expected to be effective with from 1.4.2012. I request the author to write a fresh article once the DTC provisions are implemented. Thanks.
You will have to ascertain the Fair Market Value as on 01.04.1981. Compare this with the actual cost of acqusition. The higher of the two will be taken to be the cost of acqusition. This cost of acqusition will then be indexed. For example if the sale is made in FY 2011-12 and the Cost of Acqusition as determined above is Rs. 100/- then the indexed cost will be Rs. 100 x 785/100 i.e Rs. 785/-.
Now from the sale value ( example 1000/-) you should reduce the indexed cost of acqusition and any expense reltated to transfer and you will get capital gain of Rs. 215/-
How to compute capital gain on property built in 1970-71, 71-72 and sold now
Dear Muneesh
First write the Full value of cnsideration —————-
Less cost of acquisition
785/100 * cost vaue —————–
Less cost of improvement
(index is not allowed if improvement is made before 1-4-1981
Less cost of transfer ——————
Capital gain (long)
If a person purchased a property and sells for a big amount of profit and does not pay tax then how IT Dept will take action
Hi Guru,
I have booked house in 1994-95. I have signed an agreement of purchase in 1999. What will the year of purchase for calculation of capital gain if I sell my house.
I am planning to buy house in July 2011. Later, I am planning to sell old house, which may be in 2 to 3 years prior to possession of new flat. Can I and obtain exemption on paying tax on capital gain?
Regards
wht is short term capital gain tax for real estate….?
Dear sir,
What is the index cost of acquisition for financial year 2011-12. What is the LTCG tax exempted bonds for 2011-12. Rate of interest may please informed.
chiranjeevi
I purchases a house in June,1992 for Rs.190000/- and the conveyance deed was signed in Dec,1996.Judicial papers for Rs. 18000/-were used the; Now I have sold the said property for Rs. 14 Lacs on 18TH MAY, 2011. Please calculate the capital gains arising thereof. Also advise about the utilization of capital gains in infrastructural bonds.
Thanking you.
sir ihave puchase property in delhi for 27lacs in 2009 & sold it for 52lacs in 2011 so what will be the income tax slab for capital gain.
I had purchased a plot which was registered in July,2003 but the payment was made in installment from Sept,2000 to July, 2003. My question is which date will be considered as the date of investment for calculating the Capital Gain ?
The buying and selling price of property is considered based on the registration price or the sale agreement price. As in most of the cases there is a huge difference in them.
Kindly reply to this one
My mother purchased plot Rs.90,000/- in 1994, In 2005 we have build home at the cost of Rs.6,00,000/-on that plot, Now today i.e. Apr 2011 we are selling that home at Rs.31,00,000/- so my question is what is the capital gain tax my mother has to be pay. And how can i save that. As my mother is retired from a private company. Thanks.
sir what is CCI for 2011-2012?
what is the capital gain COST INFLATION INDEX for F.Y.2011-12?
If I sell ancestral property for X amount which is acquired decades ago by my father and we are three brothers. How do I calculate Long Term CG and tax outgo now. Also, how shall I calculate the value on 1-04-1980 for Indexation purpose if required by IT Act 1961.
Dear sir,
what is the capital gain COST INFLATION INDEX for a.y.2011-12?
711
SIR,
I WANT TO KNOW WHY CI INDEX IS NOT APPLICABLE FOR SHORT TERM CAPITAL ASSETS?
sir my purchase price of a agricultural land was of rs 5 lakhs and i had purchased it in 2005-06 f.y . and if i sell it at rs. 1.56 crores then i want to know that how much would i have to pay capital gain tax. and what are the other legal formalities which i would have 2 do??
regards
bagish
Dear sir,
When will the CII for Fin Year 2011-12 (Ass.Year 2012-13)be published. In case i sell my flat in the financial year 2011-12 (original Date of registration 25-01-08)which factors should i consider for working out the CG? Pl guide me
I had purchased a piece of land for Rs 700/- wayback in 1975 and sold it for 5 lakh. How to calculate the idexed value as the basis starts from 1981-82
Since the plot of land was purchased in 1975. You will have to take the valuation for the year 1981-82. Presuming the valuation is 1000/-. The inflated cost of land wii be 1000/100*711 which comes to Rs. 7110/-. The capital Gain will be 5 lakh minus 7110.
What is cost inflation index for the assets that are bought before 1980?
sir i purchase a shop in 10-8-2006 rs.700000.00 and sale it 28-2-2011 5150000.00 how much ltcg
Since the shop was purchased in Aug 2006. The inflated cost of land will be 700000/497*711 which comes to approx Rs. 10lac plus. The capital Gain will be 51.5 lakh minus 10 lac.
Purchase new property with the proceeding or invest
Dear Sr,
I have purchased one shop in may 2003 at Rs.3.5 lacs and sold in jan 2011 at 9.5 Lacs.What will be my LTCG.
MY FRIEND HAD purchased onr plot for rs 606000 but forget to get the registry which was done in 2008 & paid rs 292000 for registry maintain charges .In oct 2010 MY FREIEND sold the plot for RS 4500000. WHAT WILL BE CAPITAL GAIN ? IN CASE MY FREIEND WANT TO BUY CAPITAL BOND WHAT WILL BE THE VALUE REQUIRED? IN CASE HE WANT TO INVEST THE CAPITAL IN SOME NEW OLOT WHAT IS THE PERIOD AVAILABLE FOR THE SAME ?
I Have purchased a Flat on March 2006 for Rs 660000. I had taken a Loan for Rs 5 .25 lac for the same and borrowed some money from my relative of around 1 lac. I had repaid prinicpal outstanding of my loan upto Rs 4 lac by taking a personal loan in 2009. I had spend roughly 1 lacs of Rs towards improvement cost Now I shall be selling this property for Rs 21 lacs. Can you please let me know what would be my actual capital gain. considering all loans that I have taken and repaid. and other costs of improvement
Dear Sir,
In the year 2006-07, I bought one flat in 12 lacs. I have sold this flat in december 2010 in 37.5 lacs. I have spent in brokerage (in selling) etc expenses as 1.4 lacs. As per my understanding the capital gain would be Rs 19.66 lacs. I am planning to re-invest Rs 20 lacs in buying a new flat in june 2011. So i should not attract any capital gain tax from above property as I am re-investing more money that capital gain!
Is it correct ?
Hi sunil,
unless we get the date of purchase(allotment), we can’t ascertain whether it is long term/ short term. If long term capital asset(other than a residential property), the gain can be invested in residential house(not necessarily occupied).See section 54F of the income tax act.See also section 54 in the case of residential property
regards
rajesh
Dear sir,
I had purchased a property at Jaipur, direct allotment from Jaipur development authority for 2 lac Rs. (incl registry and lease).
I sold the property on 5 jan 2011 for 10 lac Rs . How much capital gain I need to pay . Can I reinvest this in property to save capital gain tax.
Regards
what is purchase date
NO COMMENTS
sir, In my grandap property, J P Nagar 7th phase area, my mother got share 3.21 with parition 1973, further no any transaction in land. In 2005 our family, in 35 guntas, we divide the into 5( 7X5= 35gunts) parts with reg parition to gave to JV ,each of us got 5 flats among them my mother selling the flat of 1765 sft, with undivided share for 1765 sft is 832 sft.
To avoid capital gains,
Current guiadance value 1430 sft X 1765=2523950+ 1,00000 car parking= 2623950.
Now we r one dd for 2624000, other dd : 376000 with same nationalized bank a/c no.
we are giving with additional work like wood,tiles, grill,slide windows,ups, hardware, another fresh painting work , 8 to 9 lacks work, we have 6 lacks tax bill, 3 lacks odd bill to avoid capital gain tax.
i came to know current infaltion is 711 / 800
800*1765 =1412000
car parking = 100000
additional work with & with out tax bill = 900000
total = 25,12,000,
for remaining 4 lacks we have pay long term tax,
Now how much capital gain tax we have to pay, other option please let us know
land purchased in 2002-03 for Rs:66000/-ground and first floor constructed in 2007-08 by rs:1800000/-now ia am selling at rs:3200000/-what will be the tax? please
Dear Ruchir
In case of property purchased before 01.04.1981 , the cost of acquisition will be mostly consist of cost of land ie. circle rate of the property on 01.04.1981, such cost will be indexed using cost inflation index as per income tax act.eg if you using circle rate the cost comes to 10000.00 as on 01.04.1981 then as per current inflation index it will be 71100.00.Now you will have to deduct the sale consideration from cost of acquisition to calculate long term capital gain.
for exemption you can purchase bonds, exemption is the amount of capital gain you invest in bonds.
dear sir
we have a 70 year old ancestral property , the current actual sale price of property is 1.00 cr, i want to ask what will be the actual amount of capital gain,also if i dont purchase any property or invest in bond then how much capital gain i have to pay , do we have to invest in bond and purchase a property within 6 months , can we invest 100% of total amount in bonds , is income from bonds taxable again or not
By this mail i sending my problem. I will be highly oblige to you if you can give me reply as early as possible.
1. I purchased one bungalow on 17.2.1973 in housing society from one member and paid Rs. 51,000.00 by cheque. Housing Loan optian by the society require to be paid as per the terms of Rs. 19,000.00.
2. In the year 2005 i decided to purchase another bungalow from one enterprise (builder). As per the scheme i have to pay Rs. 3,84,000.00 for land which belong to the society. I paid that amount on 31.05.2005 on that day Registrar Document was executied in my favour by the Society and enter in to contract for the contraction of bungalow with construction company (builder) on 3rd June, 2005 for Rs. 17,00,000.00 in the said agreement it specifically mention that after making full payment bungalow will be handed over to you. I paid up the entire amount on 06.01.2006 and allotment letter was issued by the society on 01.10.2006 and thereafter i disposed of my old bungalow on 09.08.2007 for Rs. 23,000.00.
My question is can i get benefit of S. 54 of I.T.Act, 1961?
Whether I.T. department can rais a question that i paid Rs. 3,84,000.00 and executied Registrar document of land in my favour and from that date will be counted that you have purchase bungalow on that day you are not entitle for the benefit of S. 54 before one year?
New Bungalow contracted by the builder and allotment made by the Society whether it can be said that allotment/possession given by the builder on 01.10.2006?
Can I.T. Dept. demand capital gain from me for disposal of old bungalow purchase in the year 1973 and sold it in the year 2007.
Sir, i will be high oblige to you if i can get answer from you as early as possible.
thanking you,
yours
Sir,
I purchased a flat in Oct 2007 for Rs 22 lacs + 2 lacs of stamp duty + 40,000 brokerage.
Now i sold the flat in Nov 2010 for Rs 32 lacs and paid 40,000 brokerage.
I ALSO PAID 3 lacs of interest during ownership period for the home loan.
what will be my tax liability.
Thanks
Sir,
Can stamp duty and registration fee paid on the sold flat to be part of the cost of the sold property to calcualte capital gain.
Similarly is it possible to add the registration and stamp duty charges of the new flat (purchasing) to calculate the capital gain?
old flat rate = r Stamp+regd fee = s improvement = i
new flat rate = n stamp+regd fee = ns
Can I calculate the capital gain as
(n+ns) – indexed (r+s+i) ?
Thanks in advance
I have purchased a land for 0.7 Lakhs during 1989-90. Stamp duty paid = Rs.15688. Brokerage Commission Paid =Rs 5000.00. Land development on the same year = Rs 2000.Further i have constructed a house for 7.2 Lakhs during 1990-1991. Fencing charges during 2007-08 = Rs 20000.00, Patta = Rs 2,000. Civil case 2007 to 2010(Court & Lawyer expenses) = Rs 40000.00.
I have sold this property during 2010 -11 for 28 lakhs. Out of which i have paid brokerage commission as Rs.0.56 Lakhs and incidental charges as Rs 5000.00
1. Whether it attracts capital gain tax if so How much i am liable for Capital gain tax during this year?.
2. If capital gain tax to be adjusted, for how much i need to purchase a land during this year?
3. I am a senior Citizen age of 71 years. Is there any concession?
Please clarify these questions.
Siva
i have purchased a plot of 178 sq yards 2 months back… and now i have sold a house measuring 80 sq. yards… plz tell me whether the capital gain on the house sold by me can be adjusted against the plot which i bought 2 months back or not.
Sir,
I purchased a flat at kolkata in 1993-94 at Rs 3Lakh+ Rs 30000/- stamp duty. I am selling the flat at Rs 17 Lakh. What will be the capital gain & I want to reinvest the sale proceeds in buying another apartment where I have to pay Rs 40Lakh in instalments for a period of 3 yrs during 2010-11. In what scheme the sale proceeds of old flat can be kept both to mitigate capital gain as well as I can make the payment of instalments of new flat.
Sir, I have purchased a plot with residential house on it in 1996 for Rs.130,000/- Now I want to sale that property for Rs.13,75,000/- in 2010. How much tax did I have to pay on this capital gain. Or is there any provision to avoid tax.
Sir,
I had purchased a flat in 1996 and got possession in 1998 for Rs 5,10,000/-. I have made sale deed for Rs 30,50,000/- in 2010.
I have received part amount of Rs 5,50,000/- and put in CG A/c.
I have also made a deal for purchase of flat for Rs 59,00,000/-.
I have paid the amount received from the sale ie Rs 5,50,000/- but will receive the remaining amount after one month but I have to make the payment to builder for remaining amoun.
can I claim the LTCG benifit even if I am not able to pay from the proceed received from sale of property, which I will receive in one months time.
Please reply urgently,
Thanks,
BLS
How to arrive at CII for the property purchased in 1950
intended to be sold in FY 2010/11
Dear Sir
I bought flat on 30/01/1980 at a price 27,552/-, shall be selling now at 35,00,000/-. How to arrive at tax liability, pl. help.
I do not want to go for new residential property & also not much interested in Govt bonds, whats the way out to save tax??
My cost of acquisition was Rs 11,80,000, cost of improvement 270000, bought the flat in march 2001, sold the flat in aug 2010, @ Rs 3550000. only a commission of 71000 paid to broker as cost of transfer. pls advise the capital gain and the taxibility in this case.
Rdgs
Sanjeev
how to calculate IT? if bank intrest:1036 , long term capital gain:448841 short term capital gain :894 , income from rent 225000, and income from other source 347478, Advance tax paid 25000,lic 101508, medicliam 6990 and tds recd.25000 ?
F.Y 2009-10,
Dear Sir,
Father house constructed in 1985-86 given to younger sister in 2010 and she intends to pays 10 lacs each to mother, brother and another sister in US through a bank loan after registering the property on her name. We all three individually have planned to invest the LTCG (with exemptions) in NHAI for 3 year period which is approx Rs. 3,30729 after deducting the indexed cost of improvement.
1. Does indexed cost of improvement apply to all three of us as two major repairs were undertaken (1989-90 & 2008-09) for 50k and 1.5 lacs respectively?
2. Of the 10 lacs only 3,30,729 is LTCG and do we have to pay income tax for the balance 6,69,271 individually? My mother is not employed, I am self employed and my sister is working in US.
3. Do we also have to pay income tax on the interest earned on the LTCG deposited with NHAI?
Regards
Murali
we (me & my wife) acquired as residential property in 1996 and selling the same in september-2010. sale cosideration is to be distributed 50% each. Now we want to buy two seprate residential properties by investing 100% share of each receipients seprate names. Please tell me the applicability of capital gain tax on this.
Property purchased jointly by three A-60%,B-15%&C-25% in 1991-1992 Total Cost Rs 10.10 Lac. Here C is father of B.
After death of C in 2005 B got share of his father per registered will.Now share in joint property of B is 15+25=40%
B is going to sell his portion in 2010-2011 for 60.00 Lac and shall invest in flat to be free from capital gains.
B Plan to sell father,s portion in 2011-2012 at 1.00 Crore and plans to buy another flat and invest to be free from Capital gains.
Kindly let me know weather I can buy Two flats in this manner or I will be liable to pay Tax on second flat. alternatively what is the best remedy to be free from long term capital gains tax obligations
I purchased a property from DDA in 1983 for Rs. 80,000.00. I want to sell this property and likely sell amount may be s. 60.00 lakhs or more.
I am holding an NRI status since 1995 and holding a permant resident status of Australia.
I had booked an apartment from Ramprastha builder about two years ago and its possession was received in July 2010. The total cost of this apartment is around 50 lakhs and the amount was paid from my NRI account.
Can the capital gains be adjusted against the purchase of this apartment ?
If not what shall be the tax planning. Have I to purchase another property or can I invest the capial gains in other sources like shares etc.
what is difference between the sec 80DD and 80DDB ? reply
I have sold property to Rs. 600000/- in oct, 2009 which was purchased in year 2005 @ Rs. 375000/- Full of amount of sale proceeds has been used to purchased new flat @1850000/- with adding acquisiton cost of st. duty & registration charges of Rs. 112500/- Further, amount of Rs. sale proceed was equally receive in my & my father a/c as sold property was under joint ownership. Please let me know whether i am applicable for tax payment or not under LTCG or STCG, if taxable, please let me who will need to pay tax, wthether son or father
I have sold property to Rs. 600000/- in oct, 2009 which was puuchased in year 2005 @ Rs. 375000/-. please let me know wether i am applicable for tax payment or not under LTCG or STCG.
Sir, I hv sold a property i purchased in 2002 this year 2010. Part of the proceeds hv gone towards closing my HL. I propose to buy a new property from the sale proceeds. Do i get any exemption for Long Term Capital Gains on account of the repayment of the HL
Sir,
I purchased a flat at Kolkata in September 1999 for Rs.4,90,000/- and sold the same in May 2010 for Rs.11,00,000/-.How cost inflation index will be applied in my case and accordingly what will be my resultant Income Tax liability. Kindly advise and oblige.
KumKum Das
Sir, I have purchased land in 1999 and sold it in 2009 at a profit. Also, I have a flat purchased in 2005 by taking housing loan. Now can i repay the housing loan using the profit received by sale of the land, without paying any tax. please clarify
what is the cost of inflation factor for the financial year 2010-2011
sir i have sold residential NA plot
1. can i buy a flat and avoid capital gain tax
2.within what period i have to buy the new property.
3.till then can i put the money in mutual funds / shares / normal deposites
please guide..
thank you
praveen chhajed
what is the cost of inflation factor for the financial year 2010-2011???
Purchased residential plot on 23-March-1981 for Rs Rs 10,000. Sold it for Rs 20,00,000 on 15-June-2010. Please help me with my tax liability.
@Baburaj,
full consideration = 19,80,000
cost of acquisition = 2,970,00 + 40,095 + 22,562 + 27,563 (some components mightcost of improvement = 0
indexed cost of acquisition = 3,87,220*632/447 = 5,47,479
indexed cost of improvement = 0
long term capital gains without exemption = 19,80,000-(5,47,479+0) = 14,32,521
cost of new asset = 15,00,000
14,32,521 < 15,00,000
See <a href="http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITActhence net long term capital gains = 0.
I would like to know when will the government release the cost inflation index for F.Y. 2010-2011. I have sold a flat in June 2010 and I want to calculate how much deduction can I get on that flat. When do I need to pay the advance tax or where can I invest?
@Aparna,
You cannot file a revised return beyond one year from the end of the assessment year (or two years from the end of the financial year) except probably in response to a notice from the assessing officer.
Also note that in the absence of any voluntary disclosure of income scheme, if it comes to light that income has been under-reported for two years, this might trigger reassessment for many more years.
Your best bet is probably to report the income from that bank account in line with your conscience!
@Ramesh C
You have to get the cost of acquisition of the property, or get a valuation officer to determine its fair market value as of 1 April 1981. You can use the higher of the two as the cost of acquisition C.
Without this, you might be liable to tax on full 420L/7 assuming zero cost of acquisition!
You could also work out the cost of improvement of the ancestral property if any.
full consideration = 420 L/7
cost of acquisition = C/7
cost of improvement = (? + ? + …)/7
indexed cost of acquisition = C*632/100/7 = C * 6.32/7
indexed cost of improvement = (?*632/? + ?*632/? + …)/7 (depending on year of improvements)
long term capital gains = [420 L – (C*6.32/7+?)]/7
tax = 20% of gains
education cess = 3% of tax
@Pradip Joshi/Pradeep,
Exemption for capital gains tax by investment in new house applies for short term capital gains only in case of compulsory acquisition of industrial undertakings Profit on sale of property used for residence> — note insistence on “long term”, Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases.
@Pradip Joshi/Pradeep,
Exemption for capital gains tax by investment in new house applies for short term capital gains only in case of compulsory acquisition of industrial undertakings ( — note insistence on “long term”,).
@Yogendra Singh/vikram,
full consideration = 1,35,00,000
cost of acquisition = 63,00,000
cost of improvement = 0
indexed cost of acquisition = 63,00,000*632/480 = 82,95,000
indexed cost of improvement = 0
long term capital gains = 1,35,00,000-(82,95,000+0) = 52,05,000
tax = 20% of 52,05,000 = 10,41,000
education cess = 3% of 10,41,000 = 31,230
due date to avoid interest = 15 March 2010
I have purchased flat on aug 2001 at Rs 3,38,300/- and sold the same at Rs 10,00,000/- on nov 2009.
I have not purchased any flat uptill now.
Kindly show me the tax to be paid & calculation for it.
I have purchased flat on aug 2001 at Rs 338300/- and sold the same on nov 2009.
I have not purchased any flat uptil now.
Kindly show me the tax to be paid & calculation for it.
Sir,
i want to know the cost inflation index for the year 2010-11
dear sir
we have a 70 year old anscestral property and purchase price was equal to negligiable , the current actual price of property is 3.50 cr, i want to ask wht will be the actual amount of capital gain if i sell it in 2010 ,also if i dont purchase any property or invest in bond then how much capital gain i have to pay , do we have to invest in bond and purchase a property within 6 months , can we invest 100% of total amount in bonds , is income from bonds taxable again or not
Sir,
I wants know about sale of a housing plot (No building)
The property was purchased on 25/7/2002 @ 2,970,00/- + stamp Duty 40,095/- + Betterment 22,562/-+ Registration, Tax 27,563/-, No receipt for brokerage and sale writing fees etc.
I sold it for Rs. 19,80,000/- on 27/11/2009
I am registering a new property (land+ building) for an agreement value of Rs 15,00,000 on 8th April 2010
Kindly let us know whether I am liable to pay any tax.
dear sir,
I have an agriculture land about 2 hectare since January 1995. This land transferred from other person to my name by revenue departement on the basis of possession of land.
Now I want to sale my agriculture land as residential plots from March 2010.How can calculate my tax liabilites or capital gain .Please suggest me how to treat this.
I have submitted my IT return for the Last 2 years, but at that time one of my bank account was not disclosed. now i want to show that bank account at the time of filing return, please suggest me how to treat this.
Thank you.
We have an ancestral property in Chennai which is more than 40 years old. The property is for sale. Please let me know how cost inflation index is calculated for arriving at capital gains tax. We are 7 beneficiaries expecting an amount of approx. Rs. 420 L against sale of property
My father had purchased a plot in 1964 @ Rs18000/-. The Indexed cost of this plot at 1981 Index rate is around 90,000/- (Around Rs10 Lacs at 2016-2017 Index). After death of my father, I (63 years old) inherited this plot and there were some improvements and renovations 4 times between 1981 and 2002.
In 2016-2017, I got the old house which was constructed on plot demolished and re-constructed a 4 Storeyed house (approved by Municipal Corporation) through a builder @ Rs46 Lacs for 4 floors and sold 2 floors for Rs94 Lacs and retaining 2 floors for myself. (Land cost will be divided in 4 flats)
For the purpose of Capital Gain & Tax. The Cost of Land at 2016-17 Index works out only Rs 10 Lacs. (whereas Circle Rate is Rs1.27 Crores). There is HUGE discrepancy between Cost Inflation Indexed Cost and Delhi Government Circle Rates.
I want to pay LTCG taxes but what are the legitimate ways to reduce tax burden.
I will appreciate the right guidance in this matter.
house purchased in 1967 @ 5000/-
construction done in year 1970 covered area 23 sq. mt, in year 1994 covered area 7.36 sq. mt
, in year 1999 covered area 17 sq. mt and in year 2016 covered area 70sq. mt.
sale house in 2018 @2800000/- .
what is the capital gain please guide me.