Ltcg calculations under section 54f
sandeep
(Querist) 22 October 2011
This query is : Resolved
Dear Sir,
If A buys a plot of land for Rs.2.7 lacs in 2002 & sells it for 20 lacs in 2011, what will be the LTCG. The stamp duty for acquiring the plot was approx. Rs. 20,000/-. Further, If A buys a house in 2011 for Rs. 15 lacs, how much exemption of LTCG will be available under sec 54F. The additional cost of stamp duty etc. for acquiring this new house is Rs. 80,000/-. What will be the amount of additional capital gains bonds to be purchased under 54EC to obtain complete exemption from payment of LTCG. Pl. send me the entire calculations.
With best regards
A V Vishal
(Expert) 22 October 2011
Please specify the month for both purchase and sale since it is relevant to arrive at the cost inflation index
sandeep
(Querist) 23 October 2011
Month of purchase of plot: June 2002
Month of sale of plot:- October 2011
Please help now.
Regards
soumitra basu
(Expert) 23 October 2011
The indexed cost of acquisition has to be calculated using cost of inflation index. Inxed in the year 2003-2003 is 447 and in the year 2011-12 is 785. Threfore the cost is 5.09 and the capital gain is 14.91 Lacs. The rate of tax is 20% if you do not like to invest the same.
sandeep
(Querist) 24 October 2011
Half the question still remains unanswered by the experts. Please give the LTCG exemption available under sec 54F on purchse of new house as per details given in my original query.
Thanks & regards.
A V Vishal
(Expert) 24 October 2011
Sanddep, find attached the working
sandeep
(Querist) 25 October 2011
Thanks a lot, Mr. Vishal.
I want to know one more thing. Is there a need to attach any documents like copy of allotment letter of sold plot, sale deeds of plot or new house,proof of purchase of 54EC bonds etc. with the ITR.
A V Vishal
(Expert) 25 October 2011
No not at all necessary to attach any kind of documents/proofs etc with your ITR.
Sailesh Kumar Shah
(Expert) 25 October 2011
But keep theses documents in safe custody for future reference. It could be demanded by the ITO.
sandeep
(Querist) 25 October 2011
Thanks to all the experts.
