How to compute Capital Gains on Sale of Property?

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  1. Nilesh Prabhakar

    Nilesh Prabhakar New Member

    Any Chartered Accountant in Practice give me the suggestion on my LTCG Computation. I show you 2 types of Computations I made for LTCG Exemption. Please tell me which 1 is correct if any advice or suggestion thereon please tell me as early as possible.

    COMPUTATION 1 :
    Sales Consideration Rs. 65,00,000/-
    (-) Indexed Cost of Acquisition Rs. 15,437/-
    (-) Indexed Cost of Improvement Rs. 36,80,161/-
    ------------------
    Capital Gain Rs. 28,04,402/-
    Less : Exemption U/s 54
    (-) Cost of New Land Purchased Rs. 17,00,000/-
    (-) Cost of Contract value paid for
    Construction on New Land Rs. 42,00,000/-
    --------------------
    Long Term Capital Loss C/F to Rs. 30,95,598/-
    Next Year --------------------

    COMPUTATION 2 :
    Sales Consideration Rs. 65,00,000/-
    (-) Indexed Cost of Acquisition Rs. 15,437/-
    (-) Indexed Cost of Improvement Rs. 36,80,161/-
    ------------------
    Capital Gain Rs. 28,04,402/-
    Less : Exemption U/s 54 Rs. 28,04,402/-
    --------------------
     
  2. Karan Batra

    Karan Batra Well-Known Member

    Dear @Nilesh Prabhakar

    The 2nd method is correct.

    If the amount reinvested is more than the amount of capital gain, then no treatment would be done for the excess amount reinvested.
     
    aftab khan and Nilesh Prabhakar like this.
  3. Nilesh Prabhakar

    Nilesh Prabhakar New Member

    Thanks Karan
     
  4. Nilesh Prabhakar

    Nilesh Prabhakar New Member

    Karan, I also ask you on Internet I am searching the Capital gain Index for F.Y. 2013-14 is 1024 so it is correct as per Government Rule.

    Because my client's TDS deducted on property is 50000 and he forced me to file the return because for early refund. But I am confused this Index 1024 is correct or not. Please advice me.
     
  5. Nilesh Prabhakar

    Nilesh Prabhakar New Member

    Karan you are such very active member on this club. I really wishing to get advice from you in future also.
     
  6. Karan Batra

    Karan Batra Well-Known Member

    Dear @Nilesh Prabhakar

    Cost Inflation Index of 1024 is for FY 2014-15

    You would be filing Income Tax Returns for FY 13-14 and the CII for FY 2013-14 is 939
     
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