i had bought flat in jan 2009 regestration cost 15 lakh & stamp duty 57000 Rs. regst. cost 15300 Rs It sold in july 2015 by regst. cost 40 lakh Pl. advice me how much minimum money should i invest in new const,flat
how to calculate capital gain tax
what is loophole to minimize the capital gain tax
As per section 54 which deals with sale of residential property and again investment thereof in residential property , The seller need to invest only capital gains amount.
In your case you need to invest only capital gains amount only minimum in the new flat to claim exemption.
Capital gains tax will be calculated as under
Sale Proceeds xxx
Less ; indexed cost of acquisition xxx
Less ; Indexed cost of improvement xxx
Less : Any transfer expenses like commissions
etc xxx
--------
Capital gains on sale of property xxx
-------
Improvement relates to any construction, renovation of the flat you sold.
For exact calculation of your tax liability you need to send the same to our mail ID. It will not be possible for us to calculate and send you now.
We can only suggest the tax planning as per preview available in the income tax act . You send the details to our mail ID for correct calculation and suggestions
You can take benefit of exemptions under section 54 or 54EC of Income tax Act.
Under Section 54 – Any LTCG, from the Sale of a Residential Property hall be exempt to the extent such capital gains is invested in the
1. Purchase of another Residential Property within 1 year before or 2 years after the due date of transfer of
the Property sold and/or
2. Construction of Residential house Property within a period of 3 years from the date of acquisition
Provided that the new Residential House Property purchased or constructed is not transferred within a period of
3 years from the date of acquisition
For other queries/calculation of LTCG, please contact at:
You should invest a sum of Rs as determined below
Capital gains on sale should be invested which is as follows
Full Value of sales consideration less Indexed cost = capital Gain
40,00,000- 15,72,300 * 1024/632
632 is index for 2009-10 financial year. If property is purchased before April 2009 then appropriate index should be applied.
Your cost of acquisition of the flat is Rs. 15,72,300/- and the indexed cost of acquisition is Rs. 27.66 Lakhs. The index for financial year 2015-16 is not yet announced. Assuming the index to be the increased by 10%, the capital gains will be around Rs 11 Lakhs.
You can invest this amount of Rs. 11 Lakhs u/s 54 or 54EC to get exemption subject to fulfillment of conditions specified therein. You can also the entire amount of sale consideration u/s 54GB to claim exemption.
