LTCG on lawful acquisition of residential plot by government

Hi,

I purchased a piece of land in 2002 at at price of Rs. 31625.00. For development of a ring road Govt. of AP acquired it and paid me Rs.380000.00 on September 15, 2011.

Kindly tell what is the amount of LTCG. And also let me know how to save tax on LTCG.

Regards,

KV Satya Murty Bhopal

asked Sep 27 '11 at 15:23 by SATYAMURTY 111


Calculation for long term gains is provided below:

Purchase Year = 2002-03
Purchase Cost = 31625
Cost Inflation Index (CII) for purchase year = 447

Sale Year = 2011-12
Selling price = 380000
CII for sale year = 785

Indexed Purchase price = 31625 x (785/447) = 55538
Long term capital gain = 380000 - 55538 = 324462
Income tax on capital gain = 324462 x 20% = 64892.4

You can save this tax fully by investing whole sale consideration amount into a new residential house property (u/s 54F) or by investing into capital gain bonds (u/s 54EC).

answered Sep 27 '11 at 15:50 by pankaj 5.2k320

link

Know someone who can answer? Share a link to this question via email, twitter , or facebook
.

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported

Tags:

×326
×140

Asked: Sep 27 '11 at 15:23

Seen: 1,085 times

Last updated: Sep 27 '11 at 15:50