i purchased land in 1993-1994 for Rs 29000/- and registry Rs 2600 and sold the land on 24 march 2013 for Rs 20.9 lacs. how much capital gains tax is applicable and when. how to save this tax.
1 Answers
Purchase Year = 1993-94, Purchase Cost = 31600, Cost Inflation Index (CII) for purchase year = 244
Sale Year = 2012-13, Selling price = 2090000, CII for sale year = 852
Indexed Purchase price = 31600 x (852/244) = 110341
Long term capital gain = 2090000 - 110341 = 1979659
Income tax on capital gain = 1979659 x 20% = 395931.8
You can save this tax if you buy/construct another residential house property (u/s 54F) or invest into capital gain bonds (u/s 54EC).
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