Income tax capital gain
SUKANTA PAUL
(Querist) 23 April 2012
This query is : Resolved
one of my clien acquired a land by way of gift from the state of W. B Govt and mutated her name accordingly. she constructed a three storied building on the said land and some part of the ground floor used as commercial purpose for her own use. Now one part of the said ground floor which she used as a shop willing to sell to third parties at a agreed consideration of Rs. one crore. My queries are as follows:(1) wherther the sale consideration attract long term capital gain?
(2) if capital gain is attract computation of capital is needed.
(3) if tax relief is needed pl suggest what highest amount she invested in capital gain bond and where?
(4) excluding capital gain bond what amount of tax she should be paid?
A V Vishal
(Expert) 24 April 2012
Details insufficient to advise....
Shonee Kapoor
(Expert) 24 April 2012
No comments.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
CS Deepak Pratap Singh
(Expert) 25 April 2012
Dear Friend, The property sold in your case will attract LTCG. Since the land is acquired by way of gift and the value of land at the time of computation of capital gain will be zero. The cost of construction will get indexation for calculating capital gain. The capital gain should be invested by purchasing a new property or depositing in Capital gain account with a bank or investing in bonds issued by the infrastructure companies as per guidelines of the government. thanks
K.K.Ganguly
(Expert) 01 May 2012
The construction cost of the portion of the building proposed to be sold including its renovation cost incurred up till now from the date of construction to be subjected to indexation & finally to be deducted from the sale price to calculate the LTCG Tax.
