I have purchased a land and constructed a house there on during 1989-90. The cost of the land is Rs.12000(having documents) and cost of construction came to Rs.150000(having records for Rs.80000 as bank loan). Now I am selling the property in October,2012 for Rs.2000000. How much capital gain tax I have to pay. I am not an assessee now. Kindly reply me.
1 Answers
Please see long term gains and income tax computation below. Cost inflation index (CII) for FY 2012-13 has not been announced yet, so it has been assumed as 850 in computation below. Please change it once it declared.
Purchase/Construction Year = 1989-90, Purchase/Construction Cost = 162000, Cost Inflation Index (CII) for purchase year = 172
Sale Year = 2012-13, Selling price = 2000000, CII for sale year = 850
Indexed Purchase price = 162000 x (850/172) = 800581
Long term capital gain = 2000000 - 800581 = 1199419
Income tax on capital gain = 1199419 x 20% = 239883.8
I have proof (records) for an amount of Rs.92000(12000+80000) towards purchase price. I have no proof for total purchase amount of Rs.162000. In the circumstances what will be the calculations.
You can replace 1.62 lakh with 92000 in above computation
Related