Exemption for LTCG for propert sold in Nov 2009

we sold a residential flat in Nov 2009.please let us know- 1)the LTCG on the same 2)what are the ways for availing tax exemption.We have already deposited the gain proceeds in the Capital gain deposit account without considering the indexation

asked Oct 28 '11 at 13:31 by priyanka 1111

You can compute long term gains and income tax using following calculations:

Purchase Year = A
Purchase Cost = P
Cost Inflation Index (CII) for purchase year = X

Sale Year = B
Selling price = Q
CII for sale year = Y

Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q - R = S
Income tax on capital gain = S x 20%

Income tax on capital gain can be saved by investing into another residential house property u/s 54 or by investing into capital gain bonds u/s 54EC.

answered Oct 29 '11 at 17:16 by Pankaj Batra 5.2k320


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Asked: Oct 28 '11 at 13:31

Seen: 2,144 times

Last updated: Oct 29 '11 at 17:16