LONG TERM CAPITAL GAINS TAX

Hi Deepak, I have bought a plot (30'*40") during 1994 for Rs. 35,000. I intend to sell the same the price is aroung Rs. 15 lacs. I donot intend to invest in residential property. What is the longterm Capital Gains Tax I need to pay. Thanks. Ravindra 14.03.2011

asked Mar 14 '11 at 09:27 by RAVINDRAB 1●1●1●1

One Answer:

oldest newest most voted

Long term capital gains and income tax computation:

Purchase Year = 1994-95
Purchase Cost = 35000
Cost Inflation Index (CII) for purchase year = 259

Sale Year = 2010-11
Selling price = 1500000
CII for sale year = 711

Indexed Purchase price = 35000 x (711/259) = 96081
Long term capital gain = 1500000 - 96081 = 1403919
Income tax on capital gain = 1403919 x 20% = 280783.8

answered Mar 16 '11 at 13:06 by Pankaj Batra 5.2k●3●20

link

Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

*italic* or __italic__
**bold** or __bold__
link:[text](http://url.com/ "title")
image?![alt text](/path/img.jpg "title")
numbered list: 1. Foo 2. Bar
to add a line break simply add two spaces to where you would like the new line to be.
basic HTML tags are also supported

learn more about Markdown

Tags:

income-tax ×777
capital-gains ×339
long-term-gains ×326
ltcg ×140

Asked: Mar 14 '11 at 09:27

Seen: 903 times

Last updated: Mar 16 '11 at 13:06

LONG TERM CAPITAL GAINS TAX

Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Follow this question

Related questions