CAPITAL GAIN ON SELLING A HOUSE

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  1. surendra kumar

    surendra kumar New Member

    my brother purchased a plot in Nov 2003 and constructed a residential building in May 2007 on that plot. He sold this house in Jan 2014.
    How capital gain will be calculate on selling of this house?
     
  2. Karan Batra

    Karan Batra Well-Known Member

    Capital Gains = Sale Price - Purchase Price - Construction Cost

    As the period of Holding is more than 3 years, therefore this would qualify as Long Term Capital Gain and therefore Indexation would also be done for the Purchase Price and the Construction Cost
     
  3. jagmohan singh

    jagmohan singh New Member

     
  4. jagmohan singh

    jagmohan singh New Member

    As the plot was purchased in 2003 and sold in 2014 , it would qualify for Long Term Capital gain because the holding period is more than 3 years.First of all the cost price of plot would be indexed @ 939/463 i.e the cost price would be multiplied by 939/463. in addition to this the constuction cost of May 2007 would be multiplied with 939/551. After adding these both figures, these would be deducted from sale price. The balance would be Long Term capital Gain or Loss and accordingly, tax would be paid.
     
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