long term capital gain

Question

Hi Pankaj, I sold a property at 32 lakh in last month at Airoli,navimumbai,which i taken at price of 16.5 lakh(included of stamp duty and 10%paid to builder in 2007_Nov.But 14 lakh is actual registration value of flat.Can other charges like stampduty and other initial payment by cheque to builder..be included in calculating actual valuation for the flat..

Purchase year 2007-NOV price value 16.5 lakh include stampduty & regn selling year 2012-JUN price value 32lakh as per regn value..

Now my question is that what will be total tax,whether gain can be invested as follows??? 1)whether this gain can be invested in a Residential plot or 2)whether gain amount can be invested by purchasing a commercial shops.. 3)whether gain amount can be used for constuction on fathers property...to save tax???? Plz let me know.

Pankaj Batra · Answer

Stamp duty and registration charges can be added to cost of the property for computing long term gains.

CII (Cost inflation index) for FY 2012-13 has not been declared yet to exact long term gains cannot be computed right now. However if we assume CII for 2012-13 as 850, long term gain comes around 6.55 lakh. Income tax @ 20% would be around 1.31 lakh.

To save income tax on this gain, you can either invest into a residential hosue property or into capital gain bonds.

To save tax long term gains cannot be invested into residential plot, commercial plot or into construction of house on a land which is not owned by you. However, You can buy residential plot and construct house on it to avail tax benefit.

long term capital gain

1 Answers