Computation of Capital Gains Tax

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  1. Mukesh Bhargava

    Mukesh Bhargava New Member

    I have sold my share in my fathers property to my brother 0n 3.7.14 for say 2.00 crore.
    The property value in 1987 when he construted the house was Rs 20.oo lacs
    What will be the Indexed cost in 2014
    I own one house purchased in 2007 and using the sale proceeds I bought second Flat for Rs 60 lacs on 15.7.2014
    What will be the Capital Gains after indexing
    Can 60 lacs be deducted under section 54
    I can Invest another 50 lacs in Capital Gains Bonds upto 30.12.2014 and avail benefit under Sec54EC
    Kindly let me know the final Capital Gains and tax payable, if any, after availing benefit under sec 54 and 54 EC.
  2. rudrabose

    rudrabose Active Member

    In the first case, wherein you have sold property to your brother, the cost of acquisition after indexation would be:-

    20 Lakhs * 1024/150 = 1.36 Crore

    And therefore the Capital Gains on Sale would be 2 Cr - 1.36 Cr = 64 Lakhs

    The 60 Lakhs invested by you can be claimed as an exemption under Section 54.
  3. rudrabose

    rudrabose Active Member

    The balance 4 Lakhs can be invested by you Capital Gains Saving Bonds under Section 54EC.

    By doing this - you would be able to save all your taxes.

    PS: For the ease of computation, I have rounded off the figures.
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