Upgrad LLM

capital gain

goverment service

My mother had a property (residential plot) in her name which she had bought in 2007 aug for forty  three and half lacs. I inherited the same with full interest in Aug 2011. I have now sold it for seventy six lac fifty thousand. My queries are as under:

1) What would be the long term capital garins in the case ? And how is it calculated?

2) How can I deposit the money in capital gains account and what are the types of accoung available?

3) Can it be deposited in Capital gain fixed deposit account ? If yes, what is the current rate of interest.

4) What are the rules for the withdrawl from the account?

5) Can I use the money to buy a residential house even though I have already one in my name? Will this have any impact on my eligibility of seeking capital gains exemptions?

6) Any other useful information


Hi All


Can some one tell if I can claim the cost of refurbishing the house/ maintaince while calulating the long term capital gain  . If yes , can that also be a part if indexation if done in a particular year before the sale


Dear Mr. Anonymous, 

                                 First of All, it is Long Term Capital Gain. You can deposit the Amount of Long Term Capital Gain Account in State Bank but it should be used only for the purchase of Residential house in future ohterwise it become taxable in the year of withdrawal.

for know more detail you can email sachinagarwalcallb@gmial.com


Sachin Agarwal CA LLB

Contact +91 9910822027




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