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 1111


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 5.2k320

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Asked: Mar 14 '11 at 09:27

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Last updated: Mar 16 '11 at 13:06