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
1 Answers
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%
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