Hi, I had bought a piece of Land/Plot in Dec-2000 which I intend to sell in FY 2011-12 What is the tax rate on long term capital gains with and without indexation I understand that after April 2012 (when DTC comes in force) capital gains would be added to income (after deducting the indexing cost) which would mean 30% for my case where as this year it would be 20% with indexation What would constitute the cost. The price of land alone or the cost incurred in registration/name transfer can be added to cost before applying indexation. Any pointers will be greatly appreciated. Regards, Sunil
1 Answers
Income tax on long term capital gains is 20% with indexation computation.
After Direct tax code (DTC) comes into play, this gain will be added to income and will be taxed as per the slab rates (Max 30%).
Cost incurred in registration can be included in cost price before applying indexation.
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