Capital gain tax

K.K.Ganguly (Querist) 11 December 2010 This query is : Resolved
Will the hon'ble Experts enlighten me about the following?
1) I had bought a flat at Rs.35 lakhs in July,97 & sold it at Rs.1.75 Crores in July2010.
2)I had paid Rs.70,000/- towards brokerage while buying &
3) Spent Rs.5,00,000/- towrads renovation while buying

Follow Query

Report Abuse

A V Vishal (Expert) 11 December 2010
As per the details given by you, the total cost of acquisition & improvement on purchase of the flat is Rs.40,70,000. The indexed cost of acquisition & improvement is Rs.87,42,510 (Being CII notified for F.Y 1997-98 @ 331 & F.Y 2010-11 @ 711). The Capital gains is Rs.87,57,490. Tax will be @ 20.3% on the capital gains calculated as above. Alternately you can save taxes by reinvesting the capital gains in any modes referred in S.54 or 54EC.