Calculation of Long Term Capital Gain on sale of land.

What is Bastu plot?  Is it agricultural land?  Where in India is the plot? Why are you paying stamp duty on sale of the plot? Generally purchaser has to pay? It may take some time for details as per current budget proposals are availble.

Also say whether you are male or female and your age.

Purchase cost of the land in 2010 – 11 = Rs.3,00,000/-

Brokerage:                                                 =   Rs.45,000/-

Stamp duty                                               =  Rs.28,600/-

Total                                                           = Rs.3,73,600

Indexed cost of acquisition =      Rs.3,73,600 x CII(2017-18)  / CII(2010-2011) = A

Cost of improvement in 2010 – 2011  = Rs. 1,35,000/-

Indexed cost of improvement=   Rs. 1,35,000/- x CII(2017-2018) / CII(2011-2012) = B

Total cost of acquisition = A + B = C

Sale proceeds of the land  =  Rs.16,00,00/-

Brokerage Rs.1.30,000/-

Nett sale proceeds = Rs.16,00,000 – 1,30,000 = 14,70,000 = D

Capital Gain =  D – C = E

Basic IT exemption = F

Income subject to capital gains tax = E – F

If you invest the above taxable income with National Highway Authority of India or Rural Electrification Corporation within 6 months income thus invested will be exempt from tax. However interest income receivable from the investments of E will be taxable. If you invest them in such a manner that you will receive the first interest only in the year 2018 – 19, no tax will be payable for this year.

CII(2010-2011) means cost of inflation index for the year 2010-2011. CII’s are declared by the Government every year from 1981 onwards in the Gazette. You can get CII for the past years and your basic tax exemption from Google.

You have to file income tax returns for the financial year 2017 – 18 (Assessment Year (2018 – 19)) on or before 31st July, 2018 even if no tax was payable by you.