calculation for LTCG

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  1. krishnamurthy

    krishnamurthy New Member

    I bought an property in May, 1975 for the sum of 4,000. Stamp duty and registration charges, and other expenses will be Rs.400. Now I sold the property during May, 2014 for the sum of 90 lakhs. Now for selling this property i paid 2% of this sale consideration for broker as service charge. Kindly advice me on how to calculate the acquition cost, capital gain. If i bought capital gain bond for 50 lakhs, and place the remaining capital gain amount in capital gain account in a bank, and i am not able to utilise this amount for purchasing a residential property within the allowable period what will happen. kindly clarify my doubts.
  2. Parul_Gupta

    Parul_Gupta Active Member

    1. Yes you can purchase bonds worth 50 lakhs and claim exemption under Section 54 EC and keep the balance amount in Capital gains account saving scheme.

    2. If you are unable to utilise the amount parked in the Capital gains account scheme - tax wld be levied on the amt parked in the capital gains account scheme. Tax wld be payable on expiry of the time allowed to purchase/construct Residential House ie 2/3 years.

    3. For computing the exact value of Capital Gains, you would be required to ascertain the Fair Market Value as on 01/04/81. All properties purchased before 01/04/81 are required to check their Fair Market Value as on 01/04/81 as the Fair Market Value wld be regarded as the Cost of Acquisition.
  3. krishnamurthy

    krishnamurthy New Member

    Thank u sir.

    Can i kept this amount in an ordinary fixed deposit account or in capital gain account?

    Is the interest earned in the capital gain account is taxable?

    How to know the fair market value on 01/04/81?
  4. Parul_Gupta

    Parul_Gupta Active Member

    You are required to deposit this amount in the Capital Gains Account Scheme before filing the income tax returns.
  5. Parul_Gupta

    Parul_Gupta Active Member

    Yes, the interest earned on the amount deposited in the Capital Gains Account is taxable.
  6. krishnamurthy

    krishnamurthy New Member


    Thanks lot for my concerns are answered. Please let me know how to arrive the fair market value?

    If anybody answer this question?
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