Capital gain tax

Querist : Anonymous (Querist) 11 December 2010 This query is : Resolved
1)I had purchased a flat in July1997 at Rs.35 lakhs, paid Brokerage of Rs.70k & spent Rs.5 lakhs for renovation in 1997.

2) I sold the flat at Rs.1.75 Crore in July 2010.

As per my computation after availing cost inflation index benifit the Capital gain Tax @20% is Rs.18,67,684/- & with out availing Cost Inflation Index benifir the Capital gain Tax @10% is 13,430/-.

My quiry to the respected expert is

a) Is my calculation correct? i.e. is there still the law of 10% capital gain tax for not availing the cost inflation index benifit?
b)What investment should I make to avoid paying any capital ain tax or atleast pay bare minimum Capital gain tax? A detailed suggestion is requested

Follow Query

Report Abuse

Querist : Anonymous (Querist) 11 December 2010
I am sorry for the typing mistake. The capital gain tax with out availing the cost inflation benifit @10% is Rs.13,83,290/-

A V Vishal (Expert) 11 December 2010
The 10%(now 15%) tax u/s.112 of the Income Tax Act, 1961, you are enquiring of is still there but it is case of LTCG on sale of specified securities like listed shares and not for sale of immovable property.

soumitra basu (Expert) 21 December 2010
You have to invest the entire sales proceeds to another residential property for saving capital gain tax. Alternatively, you can invest only the gain portion in rural electrification bond or High way authority bond.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now