HOW LTCG TAX CAN BE SAVED?

Dear sir,

I am staying at mumbai,WORKING AS SENIOR ENGINEER IN A MULTI NATIONAL COMPANY..

3 months back i sell my flat at 32 lakh which was purchased 5yrs back in 2007 Nov.

At that time the flat purchased at 14 lakh.. IN 2007 Nov Purchase value for flat 14lakh in 2012 Jul selling VALUE FOR FLAT IS 32 LAKH..

My doubt in calculating long term gain TAX,

1)whether stamp duty and registration and interior modification charges can be included with 14lakh which is purchase value.??

2)How much will be total tax calculated..??

3)If i am purchasing a new flat with possession before Mar 13,whether the gain amount is needed to deposit in gain account nOW.?? Now the total amount is deposited in Saving and fixed deposit account..

4)If iam booking the flat in coming month and unable to get possession before this financial year Mar'13 and i will get possession before Mar 14,whether i can get tax benifit.. As there is 2 yr time limit there..??

5)Whether excluding booking amount rest amount to be kept in gain account,if it will be in gain account is not so easy to withdraw for monthly payment to builders.??

6)Plz suggest me how to save income tax in a easy way..??

7)If i want to pay tax when it need to pay,How much to pay?? can i pay in Mar 13,While filing return.??

Thanks n Rgds

Manoj kumar MAIL [email protected] Mb no-9619128698

asked Oct 30 '12 at 10:25 by manoj12 111


  1. Stamp duty, registration charges and brokerage paid can be added to purchase cost. Expenses done on interiors cannot be added unless its spent on building construction/structure modification.
  2. Purchase Year = 2007-08, Purchase Cost = 1400000, Cost Inflation Index (CII) for purchase year = 551
    Sale Year = 2012-13, Selling price = 3200000, CII for sale year = 852
    Indexed Purchase price = 1400000 x (852/551) = 2164791
    Long term capital gain = 3200000 - 2164791 = 1035209
    Income tax on capital gain = 1035209 x 20% = 207041.8
  3. If possession of new flat is taken before 31st July 2013, no need to deposit amount into capital gain scheme account (CGAS).
  4. If possession is not received before 31st July 2013, you would need to deposit long term gains into CGAS before that date. Possession of new flat should be taken before Jul 2014.
  5. Only unused gains amount needs to be deposited. Say your gains is 10 lakh and you paid booking amount of 2 lakh to builder, you can deposit remaining 8 lakhs.
  6. You can save tax on long term gains by investing into new flat (as you are already doing) u/s 54 or by investing into capital gain bonds u/s 54EC.
  7. You would need to pay tax before March 2013 to avoid any late payment charges, in case tax is applicable.

answered Oct 30 '12 at 19:02 by Pankaj Batra 5.2k320

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Asked: Oct 30 '12 at 10:25

Seen: 1,749 times

Last updated: Oct 30 '12 at 19:02