Capital gain on Commercial property

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  1. ktp

    ktp New Member

    I HAVE SOLD TWO COMMERCIAL PROPERTIES
    The Details are as under
    Property I
    Date of Aquisition:19/03/1996
    Total purchase Value including Expences: Rs.2,65,000/=
    Total sale value :Rs.39,00,000/=
    Date of sale : May 2015
    Property II
    Date Of aquisition:19/03/1996
    Total Purchase Value: Rs.4,65,000/=
    Total sale Value Rs.51,00,000/=
    Date of sale: May 2015
    My Query is-
    1) what will be capital gain?
    2) If I invest 50,00,000/-under capital gains bonds then how much capital gains tax should I pay?
    What are the option to reduce tax burden to minimum?
     
  2. Manoj Mehra

    Manoj Mehra Active Member

    The Cost Inflation Index for FY 2015-16 has not yet been announced.

    Last year's figure was 1024 and this year the figure is expected to be 1035. Assuming it to be 1035, the Capital Gains would be computed as under:-

    Property I
    Indexed Cost of Acquisition = 2,65,000 * 1035/281 = 9,65,000
    Sale Price = 39,00,000
    Capital Gains = 29,35,000

    Property II
    Indexed Cost of Acquisition = 4,65,000 * 1035/281 = 17,12,722
    Sale Price = 51,00,000
    Capital Gains = 33,87,278
     
  3. Manoj Mehra

    Manoj Mehra Active Member

    The total Capital Gains is 63,22,278. If you invest Rs. 50 Lakhs in capital gains bonds - the next taxable capital gains would be 13,22,278

    Apart from investing in capital gains bonds - you can also invest in a residential house property and claim exemption under Section 54F. However, this exemption is allowed only if you dont own more than 1 Residential House Property
     
  4. ktp

    ktp New Member

    Thanks
    I do not wish to buy resi property, then what to do with Rs.13,22,278 to save tax ?
    Or what will be cg tax?
     
  5. gaurav_kumar

    gaurav_kumar Well-Known Member

    Capital Gains Tax would be levied @ 20% on Rs. 13,22,278 i.e. Rs. 264455
     
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