am a senior citizen, aged 63 yrs, i have a minimum income of rs 50000 per annum from A.Y 1994-1995 SO i am not submitted any income tax return from 1995-1996 and having a piece of land which is for residential house purpose but it is still empty, i sale this on jan 2012worth r.s. Ten lakh the cost of acquisition is r.s. 7500 in 1994, please tell me what is LTCG on this while it is empty land, and if i invest rs 1000000 in 54ec bond then it is compulsary to submit income tax return ? and what is my tax liabilities?
1 Answers
Below is the capital gain and income tax computation:
Purchase Year = 1994-95, Purchase Cost = 7500, Cost Inflation Index (CII) for purchase year = 259
Sale Year = 2011-12, Selling price = 1000000, CII for sale year = 785
Indexed Purchase price = 7500 x (785/259) = 22732
Long term capital gain = 1000000 - 22732 = 977268
Income tax on capital gain = 977268 x 20% = 195453.6
If you invest whole sale consideration amount into capital gain bonds u/s 54EC, there won't be any income tax payable on gains.
But as your income in this financial year is more than non-taxable range, before any deduction, you should file income tax return.
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