long term capital gain on commercial property

sir,my father purchased a commercial plot as joint half share for rs 15000/- in 1980.now there is no development n my share is 50% plot is beaing sold rs 750,000/- half of my share comes to 375000/- what shall be the capital gain status for me.pls send reply to [email protected]

thanks

asked Jul 31 '11 at 15:54 by pritpalsingh 1111


First, I assume that 50% share in plot has been transferred to you already.

Long term gains will come out around 6.32 lacs (see calculation below) and 20% income tax will be payable on that. Your share will half of that, as you own 50%.

Purchase Year = 1981-82
Purchase Cost = 15000
Cost Inflation Index (CII) for purchase year = 100

Sale Year = 2011-12
Selling price = 750000
CII for sale year = 785

Indexed Purchase price = 15000 x (785/100) = 117750
Long term capital gain = 750000 - 117750 = 632250
Income tax on capital gain = 632250 x 20% = 126450

answered Aug 01 '11 at 19:16 by Pankaj Batra 5.2k320

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Asked: Jul 31 '11 at 15:54

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Last updated: Aug 01 '11 at 19:16