capital gains

Sir, my mother purchased a land in 1977 and constructed house for Rs. 4200/-. Now in august,2011 she sold it for Rs. 22,80,000/-. What should she pay as capital gains tax

murthy

asked Nov 10 '11 at 17:30 by murthy 11


Capital gains and income tax would be computed using below provided method:

Purchase Year = A
Purchase and construction Cost = P
Cost Inflation Index (CII) for purchase year = X

Sale Year = B
Selling price = Q
CII for sale year = Y

Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q - R = S
Income tax on capital gain = S x 20%

answered Nov 11 '11 at 09:41 by pankaj 5.2k320

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Asked: Nov 10 '11 at 17:30

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Last updated: Nov 11 '11 at 09:42