Computation of income tax on LTCG from sale of land

So now as per your information sale price in F.Y. i.e. Financial year 2017-18 comes to RS. 1835000 and so now the indexed cost of acquisition comes to RS. 326400 based on your fair market value for F.Y. 2000-01 (120000/100*272)

So capital gain =[deleted] = 1508600.

Now let's talk about tax on such capital gain, if doesn't matter if you are government employee and your brother is not and if you are in 30% tax slab your brother is not.

Long term capital gain rate is 20% of capital gain for everyone.

So capital gain for you and your brother would be 1508600/2*20%= 150860

Because of such high tax you will also have to pay interest of not paying advance tax on such gain.

You can save such capital gain tax by either investing your share of amount in residential property u/s 54 or by investing the amount for 5 years in specified bonds mentioned by government u/s 54EC.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

So now as per your information sale price in F.Y. i.e. Financial year 2017-18 comes to RS. 1835000 and so now the indexed cost of acquisition comes to RS. 326400 based on your fair market value for F.Y. 2000-01 (120000/100*272)

So capital gain =[deleted] = 1508600.

Now let's talk about tax on such capital gain, if doesn't matter if you are government employee and your brother is not and if you are in 30% tax slab your brother is not.

Long term capital gain rate is 20% of capital gain for everyone.

So capital gain for you and your brother would be 1508600/2*20%= 150860

Because of such high tax you will also have to pay interest of not paying advance tax on such gain.

You can save such capital gain tax by either investing your share of amount in residential property u/s 54 or by investing the amount for 5 years in specified bonds mentioned by government u/s 54EC.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Its not that hard to file ITR you can do it online but if you can spend some money it's always advisable to take help of a CA, you can find it in your city or even take online help like CA available on taxfull, you can even take help of tax return preparer available at income tax department.

So the softwares available with CA calculate interest automatically but you can yourself calculate it manually by reading section 234B and 234C online.

It's very easy to pay tax its normal like how you pay tax normally using a challan you can pay tax online or even offline by making a self assessment tax challan and mentioning your tax amount.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

- There is a long term capital gain of Rs.15,08,600. You need to pay tax@20.6% on your share in the land apart from tax on the salary income.

- You should take the help from professional to get the ITR filed.

Thanks

Hi,

The capital gains taxation is not dependent on your profession or on your other incomes.

The long term capital gain in your case would be INR 15,08,600 and both you and your brother will need to pay tax@20.6% on your respective share in the land. You can save the tax by reinvesting the capital gains in a residential property or investing in capital indexed bonds.

My advise is that you take help from a professional to get the ITR filed.

Regards,

Nikhil.

Dear Sir,

Hope you are doing well !

The Capital Gain taxability is not based on individual status. So,even if you are a government employee,and your brother are not, the tax rate @ 20.6% on long term capital gain will remain the same. Long Term Capital Gain will be taxed at 20.6% after the benefit of indexation

In your case, it is a long term capital gain of Rs.15,08,600. Accordingly,you need to pay tax @ 20.6% on Rs. 15,08,600. However, you can take the benefit of tax exemption by either reinvesting the capital gains in a residential property u/s 54F or investing in capital indexed bonds u/s 54 EC.

It is advisable that you should take the help from professional for ITR filing.

Thanks & Regards,

Payal Chhajed

Hi Deepak,

You need to know the exact distance of the land from municipal limits and population of nearest municipal area.

If the population of nearest municipal area is more than 1 lacs, then it's not an agricultural land and capital gain tax will be applicable.

Now assuming the capital gain is applicable, capital gain for each one of you would be 5.81 lacs and capital gain tax will be 152500.

You can save taxes by making eligible investment.

Yes, you should take professional help and interest can be calculated by system.

Hi Deepak

The capital gain comes up to Rs. 1508600. Such capital gains shall be taxable equally to you and your brother.

You may claim capital gain exemption by investing the sale proceeds into a residential house property.

Or you may even invest in 54EC eligible bonds within 6 months of sale of property.

A professional help is advisable.

It will be calculated by the system. You may pay the taxes online.

We may help you with return filing.

Dear Sir,

There is a long term capital gain on Rs, 15,08,600. You and your brother are equally liable to pay LCTG tax @ 20.6% on respective share in the land.

It is advisable that you should take professional help.

We may help you in filing returns.