long term capital gains tax for sale of land

i purchased land in 1993-1994 for Rs 29000/- and registry Rs 2600 and sold the land on 24 march 2013 for Rs 20.9 lacs. how much capital gains tax is applicable and when. how to save this tax.

asked Mar 27 '13 at 14:26 by rajivs9 111


Purchase Year = 1993-94, Purchase Cost = 31600, Cost Inflation Index (CII) for purchase year = 244
Sale Year = 2012-13, Selling price = 2090000, CII for sale year = 852
Indexed Purchase price = 31600 x (852/244) = 110341
Long term capital gain = 2090000 - 110341 = 1979659
Income tax on capital gain = 1979659 x 20% = 395931.8

You can save this tax if you buy/construct another residential house property (u/s 54F) or invest into capital gain bonds (u/s 54EC).

answered Mar 29 '13 at 01:42 by Pankaj Batra 5.2k320

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Asked: Mar 27 '13 at 14:26

Seen: 1,718 times

Last updated: Mar 29 '13 at 01:44