• Arriving capital gains on house property by indexbase method

I asked capital gains on selling of my house property for Rs 55,00,000/-.you all are informed to get valuation of that house property as on [deleted].
now I evaluated this property by govt approved evaluator ason [deleted] PMR value is as under
Rs 13,24,900/-(rs thirteen lakhs twentyfour thousand nine hundred).
Now I request how much capital gains I got in this transaction by index base method.
Also I will reinvest this amount by purchasing new house. this is first time I claiming this exemption.
In which account I have keep capital gain amount in the bank till I purchase new house
waiting for your reply.
Asked 1 month ago in Capital Gains Tax from Hyderabad, Telangana

Hi

 

If the value as on 1.04.01 is Rs. 13,24,900, the capital gains would be Rs. 17 lacs.

 

If you want to invest in new residential house property and claim capital gain exemption, deposit 17 lacs in CGDS account before 31st July 2020 or date of return filing for FY 19-20, whichever is earlier.

Lakshita Bhandari
CA, Mumbai
3545 Answers
174 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

There will a long term capital gain of Rs.17.90 lakhs.

 

It is calculated as below:

 

Sale consideration -Indexed COA= (Rs 55 lakh- Rs 37.09)= Rs. 17.91 Lakh

 

The indexed COA= Rs 13.24 lakh /100*280=Rs. 37.09 lakh

 

The capital gain will be taxed at 20.8% i.e. 20.8% on Rs 17.91 lakh.

Payal Chhajed
CA, Mumbai
2853 Answers
39 Consultations

5.0 on 5.0

Yes, you can claim TDS credit while filing ITR


-You need to deposit capital gain amount in capital gain account to get full exemption.

 

-It is required to deposit such capital gain in the capital gains account before furnishing return of income but not beyond due date for furnishing return of income.

 

Normally, the due date of filing Income Tax return is July 31 for the previous Financial Year. Under extraordinary circumstances, it can be extended by the Finance Ministry

Payal Chhajed
CA, Mumbai
2853 Answers
39 Consultations

5.0 on 5.0

 

The capital gains would be sale price less the indexed cost of acquisition. Indexation is to be done for the year you purchased the house.  The cost would be the actual cost as incurred to buy that property.  Indexation is a cost inflation index which is notified by the Govt. It is done to adjust for inflation over the years. This increases one’s cost base and lowers the capital gains. Capital gains = sale price -  indexed cost of acquisition – any other expenses incurred for executing sale. You can add the registration cost to your purchase price. The indexation are notified values and you need to consider the same for the year you acquired the house and sale the house. IN case the house was acquired before 2001, you can claim fair value as cost.

 

You can invest capital gains for purchase of another house to save tax.  You should purchase a residential house either 1 year before the date of sale or 2 years after the date of sale. In case of constructing a house, you have to construct the residential house within 3 years from the date of sale. Until such purchase, the gains can be deposited in a PSU bank or other banks as per the Capital Gains Account Scheme, 1988. This deposit can then be claimed as an exemption from capital gains, and no tax has to be paid on it. However, if the money is not invested, the deposit shall be treated as capital gains in the year in which the specified period lapses.

 

Since the buyer has deducted taxes and you are making investment to claim capital gains tax exemption, you can claim refund of TDS by filing the return.

Jasmina Jain Shah
CA, Greater Mumbai
361 Answers
4 Consultations

5.0 on 5.0

Hello Sir,

 

- The capital gain would be Rs ~ 17 Lakhs.

 

To calculate the long-term capital gains tax payable, the following formula is to be used:

Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:

Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Indexed cost of improvement = cost of improvement x cost inflation index of the year of transfer/cost inflation index of the year of improvement.

 

 

-If you do not get a chance to invest in a profitable property immediately and still want to save your long-term gains from being taxed, you can invest your capital gains in CGDAS by approaching any public sector bank. The timeframe for the purchase or construction of the property remains unchanged in this case as well. But you can utilise this account momentarily so that you save your gains from being taxed and have more time to finalise a property for reinvestment.

 

-You are required to deposit entire capital gain amount in capital gain account-

 

Karishma Chhajer
CA, Jodhpur
1286 Answers
7 Consultations

5.0 on 5.0

Hello,

 

Your capital gain would be Rs. 17 Lakhs approx.

If you want to claim exemption u/s. 54 by purchasing new house property, you have two years from the date of sale to purchase it and till then you can deposit the capital amount in the capital gain savings account. It can be opened with any nationalised bank.

Hunny Badlani
CA, Neemuch
794 Answers
1 Consultation

5.0 on 5.0

Yes, you will credit this TDS deducted as TDS credit in the income tax return of A.Y. 2020-21 which you can claim as refund depending upon your income.

 

Hunny Badlani
CA, Neemuch
794 Answers
1 Consultation

5.0 on 5.0

we need dates

 

yes if ur tax liability does not exceed Rs. 55000 u can get refund

Vishal Khandelwal
CA, JAIPUR
23 Answers

Not rated

Your capital gain would be around 17.5 lakh.

If you just invest this 17.5 lakh in new house your entire gain would be exempt.

You need to invest in capital gain account scheme with your bank.

Yes you would be able to claim refund of such TDS while filing the return.

If you need any assistance feel free to contact.

 

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

Thank you.

Naman Maloo
CA, Jaipur
1981 Answers
17 Consultations

5.0 on 5.0

Yes, TDS shall be claimed when you are filing the tax returns for the respective FY. So, it would be next year.

 

You may check 26AS statement whether the credit is properly reflected.

Lakshita Bhandari
CA, Mumbai
3545 Answers
174 Consultations

5.0 on 5.0

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