What is the long term capital gain amount

Dear Sir,

Hope you are doing well.

To calculate the capital gain & 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),

In your case, there would be capital gain of Rs ~ Rs 25 lakh.

It is calculated as below:

Sale consideration -Indexed COA (including stamp duty, taxes & other expense)= (Rs 46lakh- Rs 21.19 lakh )= ~ 25 Lakh.

The indexed COA= Rs 12,24,750/167*289=Rs. 21,19,477.

The capital gain will be taxed at 20.8% i.e. 20.8% on ~ 25 lakh.

As you have already invested Rs 20 lakh in another plot and paid RS 2 lakh stamp duty.

You will get capital gain exemption u/s 54 provided construction must be completed within 3 years of transfer.

Now ,You can deposit unutilised capital gain amount of RS ~ 3 lakh in capital gain account on on before 30th November 2020.

We may assist you in entire procedure.

It is advisable to take a phone consultation for detailed discussion.

Capital gain would be 24.8 lakh

If you can't use the capital gain amount then you need to deposit otherwise not.

Date would be 30.11

Sale consideration 46 lakh.

Indexed cost of acquisition 21.195 lakh.

Capital gain 24.8 lakh.

You have still not used entire capital gain amount so you'll have to deposit balance amount till 30.11

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Thank you

Hi

Calculation of capital gain is as follows

Sales consideration less cost of transfer less indexed cost of acquisition less indexed cost of improvement.

That will around 25 lakh in your case.

Long term Capital gain taxed @20.8%.

As you invested 20 lakh on purchasing a plot now construction on it should be completed within 3 year.

Remaining gain you can deposit in capital gain account till date of actual return file or 30 November whichever is earlier.

Hello,

Since you have sold residential property and invested the capital gain amount in another residential property, you are eligible for exemption u/s. 54. As per Sec. 54, the assessee has to invest the capital gain amount in either purchase or construction of the residential property within the specified period.

Your LTCG would be approx. Rs. 25 Lakhs. Since you have already invested an amount of Rs. 22,12,624/-, therefore you are required to deposit the balance of the amount in the Capital Gain Account.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hello sir

As per the information provided by you Capital gain amt will be around Rs 25 Lakhs. As per Sec 54 F u have to invest the capital gain amt in Purchase of property or plot to get tax exemption.

As you invested 20 lakh on purchasing a plot & it will be completed in within 3 year then u can get tax exemption on 20 lakhs & the remaining amt you can deposit in capital gain account till date of actual return file or 30 November whichever is earlier.

For further clarification u can contact me through Phone consultation, I can help u in filling ur ITR.

- Assuming you have incurred the stamp duty and registration charges in the F.Y. 2010-11 and not claimed the benefit under other sections of the Income tax Act. ICOA would be Rs.21.20 lacs, LTCG would be Rs.24.80 lacs. Deduct the brokerage expenses incurred at the time of selling the house. You have to invest Rs.24.80 lacs for availing exemption. If you had made payment of Rs.22,12,624 before filing of ITR then you need to deposit the reaming amount of Rs.2,67,376 in the capital gain deposit account. 

- Before filing of ITR, you have to invest the capital gain either in the property or deposit in CGA.

Hi,

The capital gain in your case would be approx. 25 lakhs

As you have already invested approx. INR 22 lakhs in another plot, my advise would be to incur additional 3 lacs in building the house before 30 Nov 2020 so that you dont need to open cgds account and deposit money into that. Trust me, its a lot of hassles and you would not want to do it given a choice.

In case you cant spend the money before 30 Nov 2020,  deposit unutilised capital gain amount of RS ~ 3 lakh in capital gain account on on before 30th November 2020 to avail full capital gain exemption.