LTCG on sale of residential house on a plot

LTCG on sale of residential house on a plot

Property, consisting of a house on a 326 Sq Mt Plot, was purchased by my father in 1983 for Rs. 1,54,367/= from UP Awas Vikas Nigam.

On his death property transferred to our mother in 22/5/1993. On her death property transferred to me and my younger brother in 23/12/2009. The property was also converted to Free hold in 2009.

Total Sale Proceeds was Rs. 2.5 Crores. The Sale was at Lucknow and registered on 10 May 2018.
The proceeds of the sale were equally shared by the two co-owners (me and my younger brother).

My share of sale proceeds was Rs. 1.25 Crores. TDS of Rs. 1.25 Lakhs deducted by the buyers in May 2018 and balance transferred to my bank account.

I paid an Advance Tax of Rs. 8.5 Lakhs in June 2018.

We engaged a Registered Valuer in March 2018. As per his report of 31 March 2018 with Inflation index taken as 272 :-
1. Value of land as on 01/04/2001 Rs. 1,105,792. Inflated value for FY 2017-18 Rs. 3,007,754/=
2. Value of construction of 1985-86 as on 01/04/2001 Rs. 493,097/=, inflated value in FY 2017-18 Rs. 1,341,223/=
4. Value of construction of 1992-93 as on 01/04/2001 Rs. 419,151/=, inflated value in FY 2017-18 Rs. 1,140,090/=
5. Investment in renovation and improvement 2004-05 Rs. 42,455/=, inflated value in 2017-18 Rs. 102,192/=
6. Investment towards free hold conversion during 2009-10 Rs. 5,700/=, inflated value in 2017-18 Rs. 10,476/=

I invested Rs. 50 Lakhs in NHAI Capital Gains Bond in June 2018. (U/s 54EC)

What will be the Capital Gains (LTCG) on my share of the sale proceeds for the Income Tax Return to be filed before 31 Jul 2019.

Asked 5 years ago in Capital Gains Tax

Hi,

- LTCG would be Rs. 96.22 lacs and tax would be Rs.9.61 lacs. CII would be 280 instead of 272.

- No deduction on account of point no.6.

Thanks

Vivek Kumar Arora

CA, Delhi

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Talk to Vivek Kumar Arora NOW!

Dear Sir,

Hope you are doing well !!

The LTCG would be Rs. ~97 lakh and you have already invested 50 lakh in Bonds.

So, the capital gain tax would be applicable on remaining amount i.e. on ~47 lakh.

The LTCG tax rate is 20% plus applicable surcharge & cess and the LTCG liability would be Rs.~ 9.8 lakh (20.8% on Rs. ~47 lakh).

You have already paid Rs. 8.5 lakh as advance tax so you need to pay remaining tax.

Payal Chhajed

CA, Mumbai

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You have sold the land in 2018-19 therefore it would be indexed for F.Y. 2018-19 and accordingly your capital gain tax would be 96,16,754/- and after investing 50 lakh in NHAI your capital gain tax would be 9,23,350/- plus you will have to pay interest.

If you need any personal assistance in such calculation feel free to contact me.

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Thank you.