炉石传说电竞买外围

POSTED BY Jagoinvestor ON May 6, 2009 COMMENTS (743)

In this post we will learn How to calculate Capital Gains or Losses. A lot of people make mistake in this . If you buy a house in 1995 at Rs.10 lacs and sell it at Rs.20 lacs in 2009. On how much profit will you pay the tax?

If your answer is Rs.10 lacs , you have no idea how to calculate capital gains. Read ahead to understand .

capital gain

What is Capital Asset ?

Capital Assets are the properties which can be held by a person . Some examples are Real Estate , Shares , Mutual Funds , Gold and Debt Funds . FD’s and other fixed returns Instruments are not part of it.

Taxation

For taxation of Capital Assets , read this : How to use your looses to Reduce Tax

How to Calculate Capital Gains ?

Most of the people think that

Capital Gain = Sell Price – Purchase Price

But , Actually the real formula is

Capital Gain = Sell Price – Indexed Purchase Price

What is Indexation ?

Indexation is a technique to adjust income payments by means of a price Index , in order to maintain the purchasing power of the public after inflation.

We must understand that prices in general also rises, so the actual prices should not be used while computing the profits , rather It should be Indexed as per Inflation in the country, so that people can get the real value from sale of there assets.

Indexation is used in Tax treatment for Debt , Gold and other asset classes

What is Cost Inflation Index (CII) ?

Year CPI
1981-82 100
1982-83 109
1983-84 116
1984-85 125
1985-86 133
1986-87 140
1987-88 150
1988-89 161
1989-90 172
1990-91 182
1991-92 199
1992-93 223
1993-94 244
1994-95 259
1995-96 281
1996-97 305
1997-98 331
1998-99 351
1999-00 389
2000-01 406
2001-02 426
2002-03 447
2003-04 463
2004-05 480
2005-06 497
2006-07 519
2007-08 551
2008-09 582
2009-10 632
2010-11 711
2011-12 785
2012-13 852

How to Calculate Indexed Purchase Price ?

Indexed Purchase Price = Purchase Price * (CPI for current year / CPI for year of purchase)

Once you have Indexed Purchase Price , you can subtract it from Sale Price and get your capital gains .

In some products Long term Capital gains is around 20% with Indexation and 10% without Indexation. In Equities Long term Capital Gains is exempt from Tax .

Let take an Example

Purchase Price 1000000
Year of Purchase 1995
Sale Price 2500000
Year of Sale 2008
No of Years 13
Purchase CII 281
Sale CII 582
Indexed Purchase Price 2071174
Capital Gain 428826
Tax with Indexation 85765
Tax without Indexation 150000

I hope the above example is clear . Below is the calculator I have created for you to calculate Capital Gain tax for your self. Just play with different numbers . Just enter the year of Purchase and Sale and It will figure out the CII (incase it does not, please put CII yourself)

Capital Gains Calculator
I have made a Calculator for you : https://public.sheet.zoho.com/publish/manish.pucsd/temp

Capital Gains Tax with Indexation and Without Indexation

There are some asset classes where you have the choice of using Indexation or not . This is true for debt funds and FMP’s . So the current rate is either 20% with Indexation or 10% without Indexation for Long term Capital Gains .

For Tax without Indexation, you simply find out normal profit (sale price – cost price) and then calculate the tax.

So you can calculate tax using both ways and then choose the one which is lower 🙂 .

How to save your Capital Gains Tax?

For people who are miser and do not like to pay lot of taxes , govt has provided some relief to them. Govt says that If you don’t want to pay tax on your capital gains, you can do following things to save your taxes.

Invest your Capital Gains in Real Estate: If you invest your Capital Gains in Real estate within 2 yrs, you will get the the exemption.

Invest in Capital Gain Bonds : There are some specific bonds issued under sec 54EC, some of them are NHAI or REC bonds. You have to invest in these bonds within 6 months. Generally the lock in period is around 3+ yrs. interest on NHAI or REC bonds is around 5-5.5% .

Tax on Capital Gains can be different for different People

Please note that Capital Gains tax can vary from one person to other person depending on which tax bracket he/she belongs to. It will also depends whether Tax with Indexation or without Indexation works out to be cheaper for him or not.

Note : For calculation purpose the 炉石传说电竞 years are business year from April – Mar, Not Jan – Dec. If you buy in June 2009 and sell in Jan 2010, you are in the same year not 2 different years.

Conclusion

So, In this post we learned how you can calculate capital gains and also take advantage of tax benefits for saving your taxes on capital gains, Your aim should be to understand the process and learn about it, so that you can take informed decisions in your financial life .

No one should take advantage of your ignorance and also to take quick decisions and make rough calculations when there is a need. If you know these rules, you can take better decisions

Questions for you

Suppose you are age 30.
– In June, 2000, You buy 20 lacs Home
– In Aug, 2007, You buy stocks worth 10 Lacs
– In April, 2008, your sell your house at Rs 30 lacs
– In June 2008, your stocks have gone down in value are worth Rs.3 lacs now.

What should you do to avoid paying any tax on capital gains made from House?

In previous post I have discussed “What is NPS , New Pension Scheme ” by Govt of India . Read it

close

Subscribe to Newsletters

743 replies on this article “How to Calculate Capital Gains and What is Indexation ?”

  1. vijay lalwani says:

    Dear sir
    my mother purchased a plot and constructed a house in house in 1975
    she passed out in 2015 the house was transferred to me in sep 2018 the dlc rate for the same at the time of transfer to me was 70 lakhs i sold the same property in apr 2019 for 100 00 000 and purchased a flat for 49 lakhs how much tax would have i to pay then
    purchase price and construction cost by mother is not known
    the value of the same in 2001 was 32 lakhs

    1. I think you need to involve a CA in this.

  2. suresh says:

    is your capital gain calculator is correct?

  3. RAMAKRISHNAN says:

    I Purchased a flat in chennai in the year nov 2000 for rs.1800000/- in my name. i propose to sell the same and purchase a bigger flat in my wife’s name as I have already been retired from service. Can I avail the benefit of capital gain tax by investing the sale proceeds in my spouse name as she is employed in central govt organisation and eligible for banks’ loan for purchase of a bigger flat?.pl clarify

    1. Hi RAMAKRISHNAN

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/solutions/ca-services

      Manish

  4. Vinay says:

    Hi Manish,

    I am holding some shares from different companies all are in loss. I have not done any purchase or sale from 2011 to Mar 2016. Can you please guide me how to calculate capital gains.

    1. There is no concept of capital gains if you have already crossed 1 yr .

  5. SAJAL says:

    I have bought a plot of land For Rs. 80,000/- in 2000 on cop-operative basis.
    Paid construction expenses for Rs. 19,00,000/- during 2014-15 & 2015-16 for build up a flat.
    I am going to sell the flat For Rs. 50,00,000/- shortly.
    I want to buy a residential flat immediately in a convenient place.

    Whether it will be treated as long term capital gain ?
    Can I get exemption on long term capital gain tax?
    Base year of acquisition will be treated as 2000 and not year of construction for 2016 ?
    Kindly reply.
    Thanks.

    1. No , it will be short term capital gains as you have not completed 3 yrs !

  6. Amit says:

    Hi Manish,

    I do hold few shares from different companies. However I have not done any purchase or sells in year 2015-16. Will there be any short tem capital gain for year 2015-16?
    My DMAT profit loss statement shows some short-term gain for the purchases and sell that I had done before 31st Mar 2015. Should I consider this short term gain shown in statement while filling tax?

    Thanks!

    1. Only when then sell something, then you should consider the short term or long term capital gains. Unless you sell it , it should not be worried about.

  7. Dhirendra says:

    The info on saving Capital Gain Tax has come handy,however please be kind to explain whether the indexation method is applicable to sale & purchase of ancestral property.

    I sold a property in 2012 ,this property was inherited from my father.

    Index applicable to this for the purpose of purchase is that of 1981-82.

    1. Yes, the tax is still applicable !

  8. Chandresh says:

    I wish to buy a house ( residential property ) in a joint name with my wife. I am short of funds hence after what I pay from my own funds, bank eligibility can I sell some of my wife jewellery and utilise the money I get towards the payment of my house. I have been married since 25 years now. Would I be liable to pay Long term capital gains on indexation made from selling jewellery which was given to my wife 25 years ago?

  9. SWAROOP says:

    I have sold a flat in FY 15-16 and purchased new flat in FY 16-17. Old flat has Long Term Capital Gain. Can anyone pls.guide me how to consider this in ITR2 .

    For purchasing new flat, I have invested the entire amount recd. through long term capital gain

    1. Hi SWAROOP

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/solutions/ca-services

      Manish

  10. GLakshminarayana says:

    hi Manish

    My father bought a site in bangalore during 1960 and constructed a house on that proerty during 1961. Later on my father expired during 2005, with a will naming me has the successor for the property after demise of my mother. Now i got this property tranfd to my name in 2013. Now i wish to sell the proerty ( 2016) what is my commitment towards Long term Capital gain tax ..

    1. Hi GLakshminarayana

      This query belongs to CA domain, hence we are not the right people to comment on this issue.

      I suggest you get in touch with a CA for this in your city.

      We also have a CA partner incase you want to explore that, Just fill in your details here and they will give you a complimentary call back

      https://www.jagoinvestor.com/solutions/ca-services

      Manish

  11. ramesh says:

    please send educational topics

    1. ramesh says:

      sir
      invested in shares worth 80 000 in 2009

      sold them in 2016 and got nearly 190 000

      whether long term capital tax to be paid ?

  12. Nagarajan says:

    I bought a flat in 2003 for 7,50,000 and now I’m selling it for 29,00,000 in 2016. How much tax should I pay?

    1. Hi Nagarajan

      A CA is more qualified to answer you query, hence I suggest better get in touch one.

      We are not right people to talk on this

      Manish

  13. Indrajit says:

    Hi Manish,
    Your article is very informative and helpful in arriving at the indexed cost of a property.
    I have one question
    In my case we took a bank loan to buy the property – the loan repayment has two components (principal value and interest)
    How do you index in such a case?
    Shall appreciate your reply to my e-mail ID

    1. Loan value etc does not come into picture. You just need selling price and cost price .

  14. SR says:

    Hi Manish,
    Can you help me out with ,STCG & how it can be avoided; on a flat purchased at 25lac in Aug 2013 and selling it at 35Lac in 2016.
    Thanks In Advance.

    1. Hi SR

      A CA is more qualified to answer you query, hence I suggest better get in touch one.

      We are not right people to talk on this

      Manish

  15. SUBIR says:

    Dear Sir, I own 250 shares in one unlisted company in 1987. I bought these shares at face value of Rs. 10/-. Now i have sold them based on a buy-back request and got about Rs. 16,000/-. Please let me know if I have to pay LTCG tax.

    1. YEs, if its delisted you will have to pay the tax

    2. kiran says:

      No you need not to pay any LTCG TAX because long term profits in stocks are exempted from tax.

  16. DiptidharM ullick says:

    i with 2 brothers was owners of a land of 4.5 khatas owned from our grand father.we sold it at 36 laks(12 laks each) in the yr 2013 august .in the sale deed purchaser paid the stamp duty on current valuation rs tree crors .i got my share rs 12 laks (1/3) by cheque & i put it in REC bond.The land is at north kolkata. is IT dept can clim any tax ?

  17. AMIR says:

    I AM GOING TO PURCHASE RESALE FLAT WHICH COST ME AT 1650000 BUT I WANT MY AGRREMENT VALUE INCREASD BY 2 LACS THE OWNER OF FLAT PURCHASED SAID FLAT IN 2008 @ 550000 SO HOW MUCH TAX SHOULD HE PAY

    1. Hi AMIR

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  18. Anil says:

    Sir my father purchased an plot at cost of rupees90,000 in year 1994 later he gifted to mother in year 2010 at market value 27 lakh. plot is lying vaccant still .is their any issue of gift tax or capital gain

    1. No, no issue unless you sell it

  19. pradeep says:

    My father bought a land in 1965. he transferred the same to his sons ( we two brothers) in the year 1995. In 2004, our father died. in 2012, we asked a builder to construct 8 flat and give 4 flats. in 2014, i got two flat and my brother got 2 flats. i sold one flat for Rs.56 lacs. in 2014
    please tell how to calculate capital gain tax.

    1. Hi pradeep

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  20. ram says:

    Is this calculator formula correct.
    Seems till Indexed purchase price its correct. Post that cell b9, 10, and 11 formula seems incorrect. ?

  21. Amar says:

    I had purchased a flat in Mumbai in 1978 for rs.60,000 ( rs sixty thousand) 600 sq.ft.
    In 2008 society went for redevelopment and I got back the possession of the new flat with 800 sq.ft. ( 200 sq.ft extra area ) in 2011 .
    The ready reckoner rate in 2011 was rs. 64,00,000 ( rs. 64 lacs)
    Now I wish to sell the said flat in 2016.
    MY question is about calculation of LTCG
    At what CII shall i calculate the Capital gain.
    At what rate should I take as aqucisation rate rs. 60,000 (rs.sixty thousand )
    OR rs.64.00.000 (rs.64 lac).

    index 1081/100 OR 1081/711

    Will it be 64,00,000* 1081/711

    OR
    60,000* 1081/100.

    or something else.
    Please reply.
    thanks in advance.

    1. Hi Amar

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  22. Gurcharan singh says:

    Hi….
    My father purchased a 200sq yard residential plot in 2001 for about 5 lac and in 2006 we started construction on it and spend around 15 lac. Construction comleted in 2007. Now we are getting around 70 lac for this house. What will be capital gain now considering that we have no documentary proof that the house constructed in 2007?

    1. You need to meet a VALUER for this and all the calculation

  23. Akshay says:

    Hi,

    Can the capital gain be used for educational purposes – funding of higher education in US? If not directly, is there some indirect way for doing this?

    1. I think there is no provision like this

  24. Uma says:

    Hi Manish!
    I have purchased a 560 yrds of land in the year 1992 in Visakhapatnam and given the same for development purpose in the year 2015. In return, I will be getting 5138 sq.ft. of developed land in the form of 3 flats. accordingly and agreement was registered in 2015. The flats are under construction and are not yet handed over to me. In this regard, I request you to please guide me whether i will incur any Capital gains for the above? in this regard, when I consulted one Auditor, he informed me that I need not pay any Capital gains as I have not sold the property and that I am getting flats in return of the land. Whereas, another Auditor has said that I have to pay Capital gains immediately. Please clarify.

    1. Hi Uma

      A CA is more qualified to answer you query, hence I suggest better get in touch one.

      We are not right people to talk on this

      Manish

  25. Dhiraj says:

    Hi,

    I have suffered short term losses on stocks / futures in equity market this fin year. In this FY only I am planning to sell off my property (residential) where in I will register long term capital gain.

    My query is – Is it possible to set off my long term capital gain (from sell of residential property) against the short term capital loss (from Equities/futures)?

    I would be obliged if you could kindly help me with the information.

    Rgds,
    Dhiraj Khattry

  26. Santosh says:

    Hi Manish,

    I would like to understand indexation in case property is purchased on CLP ( construction linked) basis. What should one take as year of purchase as installments get paid during the construction which usually take 3-5 years to complete.
    Is year of possession should be deemed as year of purchase?

    1. Hi Santosh, that would call for an article. Will do it soon

  27. Gita says:

    Hi,
    I had posted a query on Aug 11th and would be grateful for your comeback as I am unsure if I need to check your site or shall get a mail message on your views and within what time frame I should look fwd to your guidance.

    I am yet to receive a mail to confirm my subscription therefore please excuse my repeat mail as I wish to be sure my query is well received.

    Gita

    August 11, 2015 at 5:28 pm

    Kindly guide as to how one should calculate capital gains in the case the equity share was purchased at face value Rs 10 say in year 2000, but has been converted to Rs 2 face value in 2014 and I plan to sell the same in 2015.
    Grateful for your comeback”‘

    1. Hi Gita

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  28. HARESH says:

    Dear Manish Chauhan,
    My daughter is NRI/Canadian. She has sold her property in India and money deposited in their Indian Bank A/c. She wants to give Rs. 30 lakhs to me as Gift to enable me to complete/purchase my Bungalow.
    -Can she give money to father and required to prepare Gift Deed, duly notarized in Canada and register same in India?
    -I have to pay any tax for this money/gift.
    -Whether I have to show this gift in my IT Return without paying any tax?
    -My daughter has to show profit amount i.e. (Capital Gain = Sale Price MINUS Indexed Cost of Acquisition, Say Rs. 10 Lakhs). In IT Return under Income from other source 10 L minus 2.5 L (nil tax) and pay 20% on 7.5L i.e. Rs. 1.50L.
    Thanks.

    1. She can give you any amount, you dont need to pay any tax on it and dont need to prepare any docs. Just make sure its transferred from her account to yours either throuh cheque or netbanking

  29. Gita says:

    Kindly guide as to how one should calculate capital gains in the case the equity share was purchased at face value Rs 10 say in year 2000, but has been converted to Rs 2 face value in 2014 and I plan to sell the same in 2015.
    Grateful for your comeback.

    1. You dont have to pay any tax as its a capital gain on shares

  30. Prashad says:

    Hi, Do I have a choice to calculate capital gain for my Real Estate property with or without indexation that was purchased some 16 years back and plan to sell in coming months after August 2015 ? Your article was very informative but at the end I am a bit confused . For my case, I used your online calculator and the amount was around 4 lakhs without indexation and arount 8.5 Lakhs with indexation. Obviously, I would like to go for Without indexation option if I have a choice, I read some more articles where it is mentioned that “long-term gains on property, gold etc the tax rate is 20% with indexation of cost” after July 2014 which made me to think I have no choice, Please help to clarify.

    1. You can choose which ever amount is minimum !

  31. Padmakar says:

    I had sold my residential flat at Baroda in JUNE 2015 at Rs.851000/-as per sale deed and Jan try was Rs.8.00.000/.
    This flat was purchased by me in February,2001 at Rs.138000/-.
    Kindly show me/send me calculation of CAPITAL GAINTAX for my filling I.T.Return as on 31/03/2016.

    1. Hi Padmakar

      A CA is more qualified to answer you query, hence I suggest better get in touch one.

      We are not right people to talk on this

      Manish

  32. ranit says:

    Dear sir, I inherited a flat with consideration of love and affection,by gift deed four years back. If I sell the flat now what will be the capital gains tax. Please reply in detail. From Ranjit.

    1. The cost will be the market value when it was bought !

  33. Mahesh says:

    Hi Sir, For Shares Cost of inflation indexation is applicable or not ?

    1. No , because after 1 yr, there is no tax on profit !

      1. Priya says:

        If STT is not paid on shares, then?

        1. Then indexation will not apply

  34. Gaurang says:

    My grandfather purchased the flat in 1980 at pune area 800 Sq Ft,
    flat was transferred in my name by will in 1998,

    Now in 2015 i am planning to sell the flat at 3000 pq ft

    Kindly suggest how to calculate my tax liability since i dont have purchase cost.

    FURTHER is there any rebate available on flat purchased before 1981? and can that be applicable in my case? If yes then how much and under which section

    1. Hi Gaurang

      You will have to hire a professional called “Valuer” , they are certified property valuers !

  35. DrSKSahu says:

    Hello Manish
    Your guide for tax calculations using indexation was very lucid and useful. Thanks for the post.
    I want to know if purchase of farm land will count towards long term capital gains exemption after sale of house property/ flat? Also when is the CPI for the current financial year notified and where do I find the notification for the current year as I’ve sold a house recently and want to purchase some farm land with the money.
    Regards

    1. Just google for current year CPI (past financial year) and you should get it !

  36. Devang says:

    Hi ,
    I have incured a capital gains of 1Lakh rupees in the previous financial year (Aug2014) , But instead of placing only the capital gain in a capital gain account with the bank. How do i inform the bank that I was suppose to put only the gain part into it instead of the sale amount. Is it possible to withdraw without the fom C?

    1. Hi Devang

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

  37. Parshotam says:

    Hi Manish,
    How do we compute capital gain tax if we buy an under-construction house in say 2010, pay installments through self and loan, take possession in 2014 and sell in 2015 2016 or beyond. Can you explain with example?

    1. Your purchase price will be the Price at which you register and the selling price will be what you get on selling . Then follow the calculation method used in this article

      Manish

  38. Manish says:

    Hi Manish,

    I have applied for ESOP ( not listed in India) . I invested from Dec 2014 in 6 emi’s. Since I left company I can with draw the money. Price of shares have increased which means I will be getting almost 4 times of money invested.

    Please let me know my short term and long term taxes which I am supposed to pay

    1. Hi Manish

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  39. sujita says:

    sir i have purchased a house in 2012 Dec in 23 and sold in 2014 dec in 28lac so can u please guide me whether the capital gain tax is applicable to me and how can i declare the same.

    1. No , its not applicable . you will have to pay tax on the amount

  40. BSGadodia says:

    I have flat purchased flat in 1999
    Are reg charges applicable for calculating cost. are addition of facilities over the period and painting etc charges applicable for addition in cost for calculating indexation.
    After sale of this flat, in this year, only the capital gain amount, how can I transfer to son. Because I am a senior citizen of age 69 and do not want to purchase the flat in my name with the capital gain amount. or can I purchase the flat in joint name with my son like bank a/c as E/S. Because he/I want he should have a flat for getting tax benefit on his income. Pl guide.

    1. The cost price would be the registered amount in the agreement. You can do one thing , you can sell the house and transfer the money to your son as gift. I suggest take help of a CA on this matter.

      Manish

      1. BSGadodia says:

        Thank you Manish for your guidance. Nice to have your valuable opinion.

  41. Munna says:

    Dear Manish,

    Excellent info given by you.

    I am 25 and don’t have much knowledge on this subject. My question is, how can I know my total income based on my PAN number. I am a software employee. Other than my salary, my incomes are share trading, freelancing to private projects and interest on fixed deposits etc. I can declare my savings as per income tax rules but I want to know the total income tax amount based on all my incomes merged with my PAN number.

    I appreciate your support. Thanks in advance.

    Regards
    Munna

    1. Hi Munna

      There is no tool as such where you can punch your PAN and you will get the income tax calculation for you. You either need to do it yourself or involve a CA and provide him all your details !

      Manish

  42. ramana says:

    in 2009-10 property purchased at 932000/-
    in 2015 it sold at 330000/-
    now how much tax should pay

    1. Hi ramana

      Did you use the formula given in the article ?

  43. Pramod says:

    Hi,

    Is there option to avoid short term capital gains, if so what are they?

    regards
    pramod

    1. Hi Pramod

      there is no option !

  44. Vinod says:

    Hi Manish,

    Your detail explanation is good along with the calculator. But the challenge is how to arrive at the purchase price in the case of the ancestral property as one of my cousin sister had released her share using the release deed to her brother.

    Regards,
    Vinod

    1. You need to hire a Valuer in this case, if the purchase price is not clear !

      Manish

  45. Vinod says:

    Hi Manish,

    Your detail explanation is good along with the calculator. But the challenge is how to arrive at the purchase price in the case of the ancestral property as one of my cousin sister had released her share using the release deed to her brother.

  46. satyendra nautiyal says:

    thanks Manish sir for valuble informations.

  47. prakash joseph says:

    Can you pls let me know capital gains for my property as per details below :
    Cost of house + land in 1993 – Rs 31 lacs
    sale price in 2015 – Rs 1,25,00000

    Thanks and regards
    P.joseph

    1. Hi prakash joseph

      Its already discussed how to calculate, did you try ?

      1. prakash joseph says:

        I found it abit difficult, can u help ?

  48. MANOHAR says:

    Dear Sir,
    pl clarify reg capital gains
    1. i purchased house from VUDA in 1994 @ Rs.1,84,000 odd
    2. i want to sell it to 45,00,000
    3. pl let me know how much amount of tax will be levied
    4. is it true if at all to avoid tax is it necessry to invest it again to purchase house or site
    5. if so whats the time period ie in how many years it is to be purchased
    6. will u pl answer to my quarries and clarify for which i will be so thankful to u

    1. Hi MANOHAR

      I think this calls for a professional calculation. you should talk to a CA on this

  49. sakthivel says:

    Sir,
    Weather Long Term Capital Gain can be invested in commercial rent yielding building for future survival by retired indians.

    1. Yes you can invest it, but you will not get tax benefit

  50. Satya Prakash Pandey says:

    i purchase commercial flat for rs 30 lakh for the year 2009 but i have sale flat for rs 60lakh for the year 2015 can i purchase commercial plot against sale of commercial flat.

    1. I am not very sure on that, but I think you will still not get any capital gains related benefits !

  51. Rupesh Thakare says:

    siir i sold my property in short term(2year7month) , so i want know about tax.
    what to do if i purchase flat in in 2015-2016 financial year then i have pay a tax or not
    pls. suggest

    1. You need to pay the tax , there is no escape !

  52. kuldeep says:

    Sir i hv sold my inherited property in residential converting it in 143( non agricultural land ) as it comes in residence zone /surrounded by colonies situated on highway .sir my question is do i taxable . As i done registry by the circle rate of residence area/colony .. plz help me

    1. Hi kuldeep

      The question asked by you is beyond our scope. Its suggested that you hire an expert on the issue and pay them for the advice.

      Manish

  53. anil shinde says:

    Dear.
    sir,
    help me.
    total purchase value Rs.670000/-
    agreement for purchase feb.2007
    1. part payment feb 2007 Rs 125000/-
    2.part payment march 2005 Rs.435000/-
    3. stamp duty Rs.22800/-
    4. bal.part payment march 2012 Rs.110000/-
    final purchase deed complit oct 2012..

    sale deed feb.1014 Rs. 1420000/-
    plz calculate my capital gain profit n paying total tax..

    Regards
    Anil shinde

    1. Have you done it once from your side ?

  54. pam says:

    Do I have 1 year to buy another property n can I keep the amount in fd or… and one more doubt I want to keep the minus cg amount 25 lacs in fd fr few months . Can I… or I hv to pay tax on the I interest amou t…

    1. Obviously you will have to pay tax on any interest you earn out of it !

  55. pam says:

    Tht means is it the 675000 laks without tax or the 20%% tax amount .. nfr how lo gdo I have time to keep the amt… as im planni g to buy under construction flat . Plrase advice n thanks

  56. pam says:

    I sold my house in dec 2014 for rs 32 lacs registry done . Actual at rs 40 lacs.
    Actual amount sold … 40 lacs..
    Registry done at 32 lacs.
    Purchased at june 2010 at 1925000 registry done.
    What is capitalgains amount. As per my cal itcomes to around 657000 lacs.. so my ques id do I have to invest only cg amount or thetotal which amount … aplease advice. Can I keep the minus cg amount 25 lacsin normalfd in bank …

    1. You only have to invest the capital gains amount to save tax on it !

  57. Divya says:

    Hi Manish,
    This post and the comments are very eye-opening for the novice investor. Have the following questions:
    1. How does sale of shares from an NYSE listed company fit into this model? It was from an ESPP purchase. Sold in Dec 2014
    2. Can this profit be set off against a property purchase done in Feb 2014?
    3. How are ESOP/ESPP/RSU handled in case of NYSE listed stocks?

  58. Nitish says:

    Hi,

    My father has received capital gain by selling a flat and plans to purchase a new one.However not all the

    capital gain amount will be invested in the new flat. i
    Can we save tax on capital gain if we use that money for stamp duty/registration payments of the new flat ?

    1. No you cant .. The only benefit you will get it that the amount you pay for registration and stamp duty will be counted in sec 80C , thats all !

  59. b.m.ikke says:

    dear manish,
    pl.advice in the following

    – my wife purchased plot in 1999 for Rs.30000/- and sold it in 2014 for rs.290000/-
    – she is house wife and not filing IT returns
    – whether she has to pay tax on long term capital gain or exempted as per IT slab
    thanks

    1. Obviously she has to pay ! .. just like everyone else !

  60. anand says:

    Thanks Manish.
    Nice post to educate people.

    One last question NHAI has locking period of 3 or 5 years as of now?
    Is the income from NHAI Taxable?

    1. Anand

      Its 3 yrs and its not taxable !

  61. anand says:

    Hi Manish,

    I bought a flat in Bangalore on 16th March 2011 for 78.25 Lacs ( Sale agreement value ) and registered for 41 Lacs.
    Today Oct 2014, I’m selling my Flat for 105.75 Lacs ( Sale agreement Value ) and they registering for 80 Lacs.
    Govt. guidance for Flat Value is minimum 25 Lacs for registration.

    Scenario One for tax Calculations based on registration Value is :-

    80L – 1024/711*(41 Plus Reg Plus Stamp Duty)

    Scenario Two for tax Calculations based on Sale Agreement Value is :-

    105.75L – 1024/711*(78.25 Plus Reg Plus Stamp Duty)

    Which one is correct one or two scenario.

    Can I buy a commertial property to save tax for the Flat I sold?

    Thanks

    –Anand

  62. Vishnu says:

    If I sale property in the year @ 31 lacs . Proerty is purchased by
    ancestors in year 1977 in Ahmednagar Maharashtra. I received thi property as my
    ancestors property. What will be the capital gain and tax.

    1. You will have to hire “Valuer” for this .

  63. premjit dutta says:

    hi Manish,thanks for your reply.
    According to capital gain tax calculator it is coming Rs 2776375 (tax with & without indexesation are Rs 1167000 &583500 respectively) but in other formula which is stated above is coming Rs 5000000/= (approx).I can’t understand which one is correct.
    secondly if my capital gain amount is not fully used by purchasing a new flat where I can keep that money?
    the time of purchase is new asset is one year from the date of selling flat.Is it correct?

  64. premjit dutta says:

    I am selling a flat @6500000/= in 2014 which I have purchased @650000 in 2004 in mumbai. what will be the capital gain?According to capital gain calculator it is coming approximately 29000/=.Is it correct?

    1. I think thats a very low amount . I think the tax should be very high like 6-10 lacs.

      Manish

      1. premjit dutta says:

        Hi Manish,
        what I wrote in my earlier post regarding capital gain is wrong.can you kindly calculate the same?.
        Another question is can I keep that money in nationalised bank F.D.a/c for 5/6 months till I purchase a new flat?
        Thanks & regards.
        Premjit

        1. First ,. did you apply the same technique taught in the post and calculated it at your end ? Please post the detailed way by which you have calculated it .

          You can keep the money in FD , but have to use it till the end of financial year, because then you will have to file the taxes and handle it .

          Manish

  65. Wriju Bharadwaj says:

    Hi Manish, (Sorry I know I am double posting but did not get a reply last time)

    Could you please indicate the Income Tax Act/Section which clarifies this rule of 10% and 20% (or states that the assessee can choose etc.)? I am asking for this because I got 3 different responses from 2 tax consultants and 1 chartered accountant (10, 20 and believe it or not the CA insisted 30%). That’s where I got confused; also I was browsing through jagoinvestor forum

    https://www.jagoinvestor.com/forum/capitals-gain-indexation-query

    It looks like someone replied to a similar query saying that
    ———————————————–
    “The option of paying tax at 10% without indexation is only available in the case of financial assets like mutual funds and the like; it is not available in the case of immovable property – for property, the tax has to be calculated at 20.6% post indexation”
    ———————————————–
    An old post from 2011, but got me concerned nonetheless.

    Thanks and Regards

    1. I will have to find the sections, but are you doubting that ?

  66. Vijay says:

    1) I bought a commercial shop in year 2012. If I sell Can LTCG from sale of a commercial shop be used to buy a residential house, in order to save tax on LTCG. or do I need to purchase another commercial shop only

    2) Currently I am having NRI status from last 5 years so will the tax computation be same as resident or will be there be any difference

    Regards
    Vijay

    1. I think you should consult a CA on this

      Manish

  67. Yugesh says:

    Hi,

    I get a rental income share of abt 55000/- per month through my mother from the houses/offices let out ( Since property and rental agreement is in her name). My mother is paying income tax on the above rentals through TDS. She gives me my share of rent by way of cheque. Whether this is again taxable under me. Please confirm. Then it becomes double taxation. Pl confirm at the earliest

    Regards

    Yugesh

    1. No , it will not be taxable in your hands

  68. TANAY SAHA says:

    i have purchased a residential land on 30.06.2011 and have sold on 16.07.2014. it will be considered as short term capital gain or long term capital gain .

  69. rekha J says:

    I bought a site in 1992 for 2,00,000 and now want to sell it and invest in an apartment. apartment will be completed only in 2019 and we have to pay the price in equal installments till then. will I be able to save on capital gain tax since the new property will be registered only after 3 yrs of selling the old property.
    thanks and regards,
    rekha

    1. Yes, you can still save the capital gains part .. better you talk to a CA and get this all done ..

  70. Vinod Sharma says:

    Thanks.

  71. Vinod Sharma says:

    Hi Sir,

    I have one question, Sir If I pay my tax on capital gain 20%, So can I use this money for personal use, I mean can I invest this money in Fixed deposit or any other deposit in banks.

  72. P.Durgaprasad says:

    Respected sir,
    Its really good and more informative for the tax payers. kindly let me know the capital gain tax to be paid by my daughter and oblize.
    My wife purchased a hose plot in A.P.State on31.1.1991 for Rs. 1,05,000/- and constructed a two rooms shed and living in it paying all the muncipal taxes. On 1.6.2006 the same property was ginen as gift to my daughter mentioning the property value as 9,37,500/- in registered gift deed. The same etire property was
    sold by my daughter for 40,16000/- on 08.11.2013. how much capital gain tax to be paid by my daughter. kindly do me favour for this and oblize.
    Thanking You,
    Durgaprasad.P,Hyderabad,

    1. rupam manna says:

      dear sir,

      I have taken 1 bhk flat in dahanu road dist thane in financial year 2009-2010. builder hs made two agreement one property agreement for rs.800000/- and supplementary agreement for rs.450000/- and over and above i have spent rs.120000/- for rennovation. in the year 2010-2011

      I have buyer and he is ready to buy the flat for rs.1500000/-. please let me know the capital gain for this case and and also want to know the supplementary agreement value will be considered in computing capital gain.

      1. The purchase price will be considered as the REGISTERED value only . Based on that do the indexation as suggested in the article

    2. The indexation has to be calculated on 10 lacs and then dedcated from 40 lacs, that will be the capital gains !

  73. Raj says:

    Dear Manish… Thanks a lot for helping common people.. I need your help on deciding LT/ST and How is Indexing going to work in this case?
    1. I booked a flat of 30L in Aug 2006 with downpayment 100% (10% mine + 90% Bank)
    2. Got the possession + registration in Jan 2010
    3. Sold the Flat of 43L in Jun 2012

    Query:
    1. Will it be ST or LT (which date can be considered for calculation)?
    2. Will I get indexation benefit (which date can be considered)?
    3. Is there any Taxable Gain in this deal?

    1. its going to be ST , you need to add it to ur income and pay tax

  74. Hello Sir,

    I have purchased house in 1989 of 45000 & I have spent 1500000 lakh on construction this year. If I sell this property I am getting 50 lakh INR. My question is should I add this construction cost under this property purchase amount to reduce tax burden? Which tax will apply, I mean with Indexation or without Indexation?

    Please help me sir. Actually I am not getting properly about these two terms of Indexation/without indexation.

    1. The calculation for capital gains tax in your case is not straight forward, you should better consult a good CA on this

  75. Dr.S.Sharma says:

    Dear Manish
    I purchased a plot for Rs.300000 .00 in 1992. I did hold this plot. I booked a flat in 2011 in Jaypee greens costing 1.08 Cr. with loan from bank under subvention scheme. Bank financed me Rs. 80,00000.00 in 2011 and I spent Rs. 20,00000 Rest Rs. 8,00000.00 is to be paid at the time of possession some where within 2 yrs. from now. I took this loan of 80,00000 lacs with hope to sell my plot and return the loan to the bank. I had sold the plot this month for Rs.11000000.00 and returned the loan of Rs. 80,00000.00 to the bank. I had gone through the clauses of long term capital gain and consulted the CA also. I don’t own a house. Please let me know am I eligible for exemption of tax on my long term capital arising out of this sale of plot or not. My CA initially advised me that I can avail it but now he is in doubt. I am under great amount of worry regarding exemption under long term capital gain. Please advise.

    1. Hi Shambhu

      Can you open this question under our forum – http://www.jagoinvestor.com/forum

      Manish

  76. Rinku says:

    Hi Manish,

    I have a query… Incase I have picked up a property( residential) in 2010 and the property has been registered at the same time, the possession will be given next month ( April 2014) … and I sell the property immediately will it be calculated as LTCG or STCG????

    Thanks
    Rinku

      1. Rinku says:

        Thanks again! So basically for real estate the cap gains are always calculated from the day of possession…irrespective of when the agreement is registered n stamp duty paid?

        1. Yes, Possession letter date , this is based on my current info !

  77. sharad says:

    hi azeez,I had just got into an agreement to sell my flat which was bought in 2007. I m planning to complete the registration process in 1st week of april. pls guide me on the LTCG complications as I m getting the full consideration in white(no black money is involved). I had purchased the flat for 25lacs in 2007(registration date 18th sept 2007) and would be selling the flat in april 2014 for 67 lacs.so can you pls guide me the approx tax liability after taking into account the INDEXATION VALUE…..
    Also guide me if i can use the loss of equity market to setoff my capital gain income from property…..

    1. Hi Sharad, you can use the same formula to calculate the indexation value .. please do the calculation and paste it here .

      You cant set off loss from equity with profit from capital gains .

  78. Yomesh says:

    Hi Manish,

    I am going to sell property “A”. By selling property “A”, My Capital gain comes around 10 Lacs (using Indexation technique).I have to repay remaining home loan(principle amount) around 8 Lacs taken for property “A”.
    That means ,my net capital gain would be (10 Lac-8Lac) 2 Lacs.
    I am going to invest this capital gain for purchase of new residential property.
    Please let me know,the deduction of home loan principle from capital gain can be performed (as mentioned above)?

    1. Hi Yomesh

      It does not work like that, the principal amount you need to pay is totally not related to this, what you got after indexation (Rs 10 lacs) is what you need to pay tax on . The only way to save tax on this is if you use this money to buy another real estate.

  79. gsvirdi says:

    Example given here is:
    Purchase year is 2005 so it’s CII is 281. but how should we take when its bought in mar 2006??

  80. uday says:

    Manish,

    Can the capital gain arrived from sale of two properties be clubbed together to get tax exemption while buying a new property?
    e.g. I have sold one flat in Dec 2013. I am Planning to sale off second flat in April/May 2014. I am planning to buy a new flat in April/May 2014. Can I club the capital gain of these 2 sale proceeds (say 70 lacs together) to buy another flat ( say Rs 80 lacs) and still get the tax exemption? pls advise.

    Also advise if capital gain arrived from sale of residential property be exempted if it is used to buy a commercial property ( an office space for self run business)?

    Thanks in advance.
    Uday

    1. Yes, you can club it, but the tax availing will not be possible if you are buying commercial property ! . I suggest you also post it on our forum to get more suggestions – http://www.jagoinvestor.com/forum

      1. uday says:

        Thanks a lot Manish.

  81. G Chakravarty says:

    Hi Manish!
    I sold a 2bHK last month to buy a 3HBK for my family needs. I bought the flat for about 10 lakh in 2008 (will be about 11.5 lakh including registration and stamp duties) and sold it in October 2013 for 32 lakh. So, how much will be my capital gain amount? 20/22 lakh roughly?
    And, how soon do I need to invest that amount to be exempted from capital gains tax? Some say I need to invest the money in purchase of another flat within 6 months to be exempted from tax, some say the period is 1 year, while I read in most online forums that the window period is 2 years for investment in another flat. Which one is correct? Please help.
    Also, my mother bought a small flat a few months ago for which I am a co-applicant in her house-building loan. If I repay the loan, will I get the benefit of capital gains tax exemption?

    I will be very grateful to you for your kind assistance.

    Thanks, Gangeyo

    1. Note that its 2 years.. but if you dont do it before the financial year , then it gets complicated, because you cant just verbally say to tax department that you will use it in future . Then you will have to invest the money in capital tax bonds .. so either use it before the financial year or invest the money in capital gain tax bonds ..

      Coming to your another query, you cant get exemption benefit on repaying your mother house loan , its only on purchase transaction as per my understanding !

  82. Nikhil Gadewal says:

    Dear Manish,
    I own 2 flats. I am now investing in third flat as investor (No registration of flat will be done. It will be like an fixed deposit). I am paying 4 lakh and after 3 years builder will give back 8 lakh. So 8 lakh will be consider for capital gain tax?
    If so, after 3 years I can save 8 lakh as Long term capital tax by investing on third flat. My second query is am I eligible to avail long term capital tax for third flat, if I already have 2 flats on my name?

    Please reply to my queries as soon as possible by today.
    Thanks,
    Nikhil

    1. There is no transaction like this approved and authorised . What documents will you get from builder on this ? Will it be shown as invetments in real estate ? If not, then its like 4 lacs was given and 8 lacs got back , So I am not sure how this taxation will happen . I think a better answer can be expected from our forum – http://www.jagoinvestor.com/forum

  83. Nipun says:

    Hi Manish,

    Thanks for providing very fruitful and handy information on capital tax gain and respective calculator.

    Need your advise….

    I bought a house in under construction society in Apr 2005 and upfront paid the builder approx 29 lacs (Downpayment sceheme). In 2007 (Aug), before getting the possession, I paid approx 1 lac for parking, maintenance and other stuff. Also, I spent 2.5 lacs for registry (10% stamp duty). Please note that the total cost of property is 29 lacs out of which 25 lacs was for property cost and 4 lacs was provided to builder (as separate agreement) for internal furnishing, white washing, etc.. Registry was done on the 25 lacs and not 29 lacs.

    Query
    a) What should be the purchase year since i paid the full amount in CY2005 and posession was in 2007?
    b) Also, i spent 29 lascs in CY2005 and approx 2.5 lacs including stamp duty, parking etc. Therefore, how should I do the indexing.
    c) It would be good if you can provide me how to calculate and what will be the final capital gain in this case.

  84. Muthu Krishnan V says:

    ” either 10% with Indexation or 20% without Indexation for Long term Capital Gains .” It should be the other way round, 10% without indexation and 20% with indexation

  85. Would you have a capital gains tax calculator for SIPs? This is regarding some MF redemption that I had done in AY 2011-12 for which I have got a query from the IT Department now. I hadn’t paid any tax on the Short term and Long term (Investment had both Equity and Debt MFs) at that time due to lack of knowledge about it. I’d like to pay the appropriate tax now but do not know how to compute the capital gains. I have tried checking in CAMS/Karvy but none of them have the capital gains statement for transactions done 3 yrs back…

    1. I suggest get in touch with a CA right now and get it done professionally

  86. Rahul says:

    Hi Manish,

    Thanks for this informative post. I am filling in my returns now and am stuck with a problem with calculating capital gains. I had been granted stocks in my company in US. They were held in a Demat account in US. I sold the stocks a couple of years back. But I transferred the money to India this year. The dollar-rupee conversion rate on the day I sold the stocks (I have paid tax based on that) was less than the rate when I sold it. $1 == Rs 44 when I sold the stocks. $1 = Rs 54 when I transferred money to India. Does this difference constitute a capital gain ? If so, is it LTCG or STCG ?

    Thanks

    1. Thats a complicated one . I suggest you open a thread on our forum to discuss this matter – http://www.jagoinvestor.com/forum/

  87. arya says:

    Let me elaborate on my queries:-
    1. While calculating the STCG are costs like wood work, stamp duty, home loan interest considered part of cost ?
    2. The buyer is actually paying 5 lacs for wood work. Should this be part of the Sale deed and be calculated as my income ?
    3. If the buyer registers based on the guidenace value of 30 lacs ( if that is allowed for resale properties ), would that be considered my income and STCG be calculated as Nil ??

    1. 1. Only the registered value of house in agreement is taken as COST PRICE

      2. No it should be not

      1. arya says:

        According to http://incometaxindia.gov.in/Archive/HowtoComputeyourCapitalGains_18062012.pdf

        Short Term Capital Gains is computed as below:
        STCG = Full value of consideration – (Cost of acquisition + cost of improvement + cost of transfer)

        Full Value of Consideration – This is the amount for which a capital asset is transferred.

        Cost of Acquisition – Cost of acquisition of an asset is the sum total of amount spent for acquiring the asset. Where the asset was purchased, the cost of acquisition is the price paid. Any expenditure incurred in connection with such purchase, exchange or other transaction eg. brokerage paid, registration charges and legal expenses etc.., also forms part of cost of acquisition.

        Cost of Improvement – The cost of improvement means all expenditure of a capital nature incurred in making additions or alterations to the capital asset. However, any expenditure which is deductible in computing the income under the heads Income from House Property, Profits and Gains from Business or Profession or Income from Other Sources (Interest on Securities) would not be taken as cost of improvement.

        So, in my case the STCG would be
        66lacs FVC – 48.25 lacs CoA (40 lacs basic price + 3.25 lacs parking and amenties + 5 lacs Registration and VAT ) – 4 lacs CoI( wood work ) = 13.25 lacs

        1. Thanks for digging out that info . I will have to check it in detail and let me come up with an article on this . I might not be aware about it fully.

          Manish

  88. arya says:

    Hi Manish,

    I bought an underconstruction flat last year ( July 2012) which I took posession on April 2013. My total expenses till now for acquiring the flat is 56.25 lacs breakdown is 40 lacs ( basic price ) + 3.25 lacs ( parking and amenties ) + 5 lacs ( Registration and VAT ), 4 lacs ( wood work ) and till now I have paid bank interest of 4 lacs. I have registered the flat as per the guidance value which came to about 30 lacs.

    This month I am selling the apartment to a buyer for 66 lacs. He says he’ld deduct 1.03% as TDS straight away. That makes my profit 9 lacs.
    The buyer is going to register the property for the full agreement value of 66 lacs.
    If my short term capital gain is calculate as 66 lacs – 30 lacs = 36 lacs and if i pay according to tax slab of 30% i end up paying 10.8 lacs as tax !!!!! Plus I already paid 67900 TDS !!! So I am completely at loss.

    Are my above calculations correct ?

    1. Yes. But thats how it will happen, your cost will be 30 lacs only

  89. Junaid says:

    Hi Friends,
    I am a salaried person, having form 16.
    I have income from Interest from my salary account.
    I have a little LTCG, and STCL of about 8K.
    My problem is, filling ITR-2 sheet, as the sheet CG-OS looks big puzzle to me.
    Please help me, what to fill in A 2a ~2d ( I have a loss of 8K)
    and i have a LTCG, i bout shares two years back and sold last year with a gain of around 5k. which section of B i should fill, and how to fill.
    (Please help me , as this is my first experience with the ITR-2)

    1. Why are you not taking help of a CA or online filing websites .

  90. shaheen says:

    Hi Manish, a few questions for you.Take this case. Suppose MY MOTHER AGED 68 YEARS, sold agricultural land for 2.5 crores. Will there be capital gains tax on sale of agricultural land? If yes, then if she buy three house in HER NAME for 50 laks, 30 lakhs and 20 lakhs respectively in HER NAME, will this amount (1 crore) be offset for the purpose of calculation of capital gains tax after taking into account ? In other words, would the capital gain tax be now payable on the remaining 1.5 crores only after taking into account indexation? If SHE buys one house in her name, 2nd house in my name and third house in my wife’s name then would she still be offset for the amount spent on purchase of the 2nd house and 3rd house as well or will the gift tax be liable to be payable by me and my wife? What is the gift tax rate? Last question, the area I live in has been declared as educational belt by the govt. Does this mean that the ‘land use’ has automatically become commercial from agricultural ?

    1. No shaheen

      She cant do that, because agricultural land sale money can be offset only when another agri land is purchased. She cant take money from agri land sale and then buy commercial or residential lands or property . I would say if this amount of money is involved, better hire a Good quality CA !

      1. shaheen says:

        Thanks Manish. But you did not answer the last query that the area I live in has been declared as educational belt by the govt. Does this mean that the ‘land use’ has automatically become commercial from agricultural ? If it has become commercial then would she have to buy commercial property to offset the capital gains tax or can she buy residential plot/property too to offset it?There is also a school and a college as my next door neighbors. Our land is nestled between the two.

        Another question. If she gifts the sales proceeds amount to me and my wife, then would she still have to pay capital gains tax? And would I and my wife be liable to pay income tax on this amount?

        1. Actually its going a little deeper into this, which I think should be consulted to a CA 🙂

  91. Balaiah, K says:

    My wife purchased a residential plot in 1986-87 for Rs.2200/- This was acquired by Govt. of AP for laying roads and compensation of Rs.330000/- is paid in 2012-13. Out of this Rs.33000/- was deducted towards IT and form 16A issued. My wife is House wife no other income is existing ever since her marriage in 1971. No income is also likely to accrue in future. Will you kindly compute her tax liability and intimate quickly and suggest measures. Thanks.

    1. The TDS cut is more than her tax liability . IT has to be only 13,000 . Rest has to be claimed back by filing returns !

  92. Mahesh Thakur says:

    Hi Manish,

    We Sold our flat for 37Lacs in June 2013 (purchased for 20Lacs in March 2008)
    using the capital gain calculator, indexed purchase price is around 32Lacs.

    we booked a flat which is under construction in May 2013(one month before sale of our flat) and paid 6L as booking amount.

    do we still have to pay capital gain tax?
    please let me know.

    1. No you dont have to in that case !

  93. Ankit says:

    The excel sheet for computing capital gains with and without indexation is wrong in many places, please correct it.

  94. Amit says:

    How to calculate capital gain on sale of ESOP?

  95. Ganesh says:

    Dear Sir,
    I had sold my home to Rs. 23 lakhs after (purchase on jan 2005 for Rs. 4,33,000) 8 year (on 4th may 2013) & purchase 2nd flat for Rs. 53,75,000 (10th may 2013) & settled my existing (occupied flat) home loan of Rs. 16,40,000 (13th june 2013)
    my queries are,
    1. what will be minimum capital gain ?
    2. Best option to save capital gain tax ?
    Please guide me! Waiting for your reply………

    1. Ganesh says:

      out of Rs. 53,75,000/- (cash paid 8,06,000/-, loan 45,68,750/- & stampduty/registration Rs.3,50,000/-)

  96. sir, i have purchased a new flat for rs. 2000000 by making a loan in bank. after a month i have sold my old flat for rs. 1300000. my capital gains tax works out as
    rs. 131437. please tell me whether it is correct or not
    and one more that, i am going to incurr rs. 200000 for furniture and service tax and vat tax incurred for new flat comes out as around 200000. can i claim this amount and deduct it from my capital gain or not. or if i do some alterations in my new flat is it deductible from capital gains amt

    urgent please

    1. You can only claim for Stamp duty under section 80C

  97. googly says:

    I have purchased a flat for 10L in oct 2002. Sold it at 70L in 2013. Apart from the indexation, Can I avail things like interest paid on loan on flat? or things like expenses done on flat like repairs?

    Thanks.

  98. Patel Bhupendra says:

    I have 4 acare agriculture land (vadilo parjit it means straight line varsdar ) in (VUDA) nearby corporation of vadodara , same agriculture land transfar into N.A. in March-2013, and can I sale my N.A. land ? How to calculate Capital Gain Tax, and if I sale Rs.500=00 per sq.ft.,what is alternative of Tax save? where I have to invest this tranction amount to save capital gain tax ?

    1. You can invest the money in Capital gains bonds or NHAI bonds !

  99. Sunita says:

    Dear Manish,

    Thanks a lot for this informative article.

    I have a question in regard to calculation of LTCG while selling a constructed house. As I understand, on the cost side, I can include the cost of land, stamp duty while purchasing the land and the cost of construction later on. I can add these three components and then index the total to come up with the final cost.

    For cost of land and stamp duty, I guess I can use the original sale deed of the land in my favor.
    I am however not clear what is the basis for cost of construction. I had a detailed estimate prepared by a registered architect during construction. Can I use the cost mentioned in this estimate as the cost of construction and use the same for indexation.

    Thanks and Regards,
    Sunita

  100. Babu says:

    Dear Manish,

    Thanks for your wonderful post. Please correct the Capital Gain and Tax with Indexation calculation in your CAPITAL GAIN calculator. In your calculator, capital gain was not used to calculate the tax indexation.

    -Babu

    1. Will do . Thanks for pointing it out !

  101. Babu says:

    Dear Manish,

    Thanks for your informative article. I think the “Capital Gain” and “Tax with Indexation” was calculated wrongly in the below link. Kindly apologize if am mistaken.
    http://public.sheet.zoho.com/publish/manish.pucsd/temp

  102. Soaham says:

    Hi Manish,

    This is really amazing… I have subscribed to both the Wealth Club as well as the 100 Money Actions programs… While it was great to see that I already have fairly got everything on track as far as the 100 actions were concerned, I am now looking forward to the benefits from Wealth Club subscription…

    I had asked a question some time back when you sent emails asking about Tax-related queries… I did not get a response on that so I thought I’d post it here –

    Background –
    Like many others like her, I have got my wife to trade in the markets as well. The investments are not a lot and currently hover around 600,000. Since September 2012 when she started working, till Mar 31, 2013, her profit was about 60,000/-

    Now this is not taxable as per the tax slabs. However, this is still her Short Term Capital Gains. This is her only source of Income…

    Considering (and building upon) this scenario, I have the following questions –

    1. If her net profit from trading is < 200,001 – Will she pay any taxes? If so, would it be at 15%? Or she will not pay anything as her profits for the FY are below the taxable income slab?
    2. If her net profit from trading is between 200,001 and 500,000 – Will she pay 10% Income Tax considering the Tax Slabs, or pay flat 15% STCG Tax even if her income is in 10% range?
    3. If her net profit from trading is between 500,001 and 1,000,000 – Will she pay 0% for profits up to 200,000, 10% for profits up to 500,000, and 20% for profits that are more than 5L and less than 10L? Or will she pay a flat 15% on the entire profit amount?
    4. Finally, if her net profit is more than 1,000,001 – Will she pay 0% for profits up to 200,000, 10% for profits up to 500,000, 20% for profits up to 1,000,000, and 30% for the remaining profit amount? Or will she pay a flat 15% on the entire profit amount?

    Thanks in advance,

    Best,
    – Soaham

    1. 1. No tax, if the income is below 2 lacs (whatever source it is, does not matter) , no tax. the 15% tax is there only when your income is above the taxable limit

      2. In that case flat 15%

      3. no , flat 15%

      4. same

  103. Saravanan A says:

    For the question you have asked at end, I tried to calculate. Looks like still we need to pay Tax for 1.66L which is the net profit. Am I right, you have asked how to avoid the whole tax?
    Calculation which I tried is given below:
    10*582/406
    14.33 => Indexed Price
    30-14.33
    15.67 => Profit in House

    10*582/551
    10.56 => Indexed Price
    3-15.67
    -12.67 => Profit in Stocks

    Net Profit
    14.33-12.67
    1.66

  104. ADARSH MOHAN says:

    Dear Manish, Thanks a lot for such informative website. My querry is that recently I had sold my property on 25th may 2013 @ Rs 40 lacs. Cost of purchase was Rs 34.54 lacs. Date of allotment was 31.08.2009 where as date of registration was 11.10.2012.

    My CA says that date of purchase shall be date of registration i.e. 11.10.2012. Accordingly, there shall be a SHORT term capital gain of Rs 5.46 lacs.

    However, as per your response in https://www.jagoinvestor.com/2009/05/how-to-calculate-capital-gains-and-what_7801.html to Mr Prasad at Sl No 494 & 495, date of purchase shall be Date of allotment i.e. 31.08.2009. According to this, indexed purchase value shall be Rs 48 lacs and LONG term capital loss of Rs 8.00 lacs.
    Kindly clarify. You are also requested to convey the treatment of this LONG term capital LOSS.

    Regards

    1. Actually this is grey area ! .

  105. PRADEEP KUMAR says:

    A PROPERTY IN NAGPUR SOLD DURING THE YEAR 2012-13 AFTER DEATH OF MY FATHER WHICH WAS PURCHASED IN 1971 BY MY FATHER .I NEED INDEXED COST OF PROPERTY AS ON 01/04/1981 TO CALCULATE LONG TERM CAPITAL GAIN.HENCE I WANT TO KNOW WHAT DOCUMENT AND FROM WHERE I HAVE TO OBTAIN FOR THIS PURPOSE.

    1. PRadeep

      You will have to hire a Vauluer for this .

  106. Sanjay says:

    Dear Manish,

    Is tax on capital gains independent on which tax slab the person is in or there is a connection ? I mean will the person have to pay tax on capital gain even if he/she is in min tax slab ?

    Regds
    Sanjay

    1. PRADEEP KUMAR says:

      NOT REQUIRED TO PAY .

      1. Sanjay says:

        I am confused. I am seeing 2 contradicting answers.

        Person will have to pay or not ?

  107. nithin says:

    property sold on may 25 2011. money put in capital gains account. now what is last date before i can buy a flat?? is it may 25 2013?? is there any grace period?? can the capital gains money be used for paying the sales tax also

  108. Wriju Bharadwaj says:

    Hi Manish,

    One question regarding taxation with v/s without indexation which one applies to cap. gains from sale of residential flats?

    Plus are there any specific benefits for senior citizen women.

    On a separate note, I noticed the sheet on ZOHO has some missing/hard-coded values, I have updated a copy of the sheet but
    a. I don’t whether the calculations (post changes) are correct
    b. how can one update the copy on ZOHO so that everyone on this site can take benefit???

    1. Wriju

      Yes, its applicable for residential flats also . Let me look at the ZOHO sheet and come back to you

      1. Wriju Bharadwaj says:

        Hi Manish,

        Sorry my question wasn’t clear.

        If a person is selling a residential property bought 10 years ago, when the income tax calculation needs to be done which one will apply?

        a. with indexation
        or
        b. without indexation

        Or is it that I have a choice between the two?

        Also is there is relief/benefit for senior citizen women?

        1. You can take which ever is lower

          1. Wriju Bharadwaj says:

            Thanks….

          2. Wriju Bharadwaj says:

            Hi Manish,

            Could you please indicate the Income Tax Act/Section which clarifies this rule of 10% and 20% (or states that the assessee can choose etc.)? I am asking for this because I got 3 different responses from 2 tax consultants and 1 chartered accountant (10, 20 and believe it or not the CA insisted 30%). That’s where I got confused; also I was browsing through jagoinvestor forum

            https://www.jagoinvestor.com/forum/capitals-gain-indexation-query

            It looks like someone replied to a similar query saying that
            ———————————————–
            “The option of paying tax at 10% without indexation is only available in the case of financial assets like mutual funds and the like; it is not available in the case of immovable property – for property, the tax has to be calculated at 20.6% post indexation”
            ———————————————–
            An old post from 2011, but got me concerned nonetheless.

            Thanks and Regards

  109. Shriyash says:

    Hi Manish,

    I bought a flat in 2004 for 13.43 lacs (stamp duty+flat price). I am now selling it for 73 lacs.

    My LTCG is almost 59.6 lacs. Following are my queries.

    1. Who decides on 10% or 20% (with or without indexation) tax on LTCG? Because with indexation my tax will be higher and I would want to go for without indexation tax?
    2. If I buy a commercial property will this LTCG can be used and tax be saved?
    Regards
    Shriyash

    1. 1. Its always the lower one .. so you choose one which is lower

      2. I dont think so . It has to be residential

  110. Vijay Zanvar says:

    Manish,

    Investing the capital gain earned on selling an immovable property to buy another immovable property saves tax on the gain. So there should be similar ways for saving tax on capital gain earned from FMP. Please elaborate, or considering writing another post.

    Best,
    Vijay Zanvar

  111. Mudaliyar says:

    Dear Chauhan,
    I reced a order U/s 271A of the income tax act 1961 that to pay amount of Rs.25000.00. The penalty made by officer that my account shown under section 44AF, but it should be 44AA to maintain a/c.. My business activities that are selling flower bouquet through web site. Order is received from overseas clients and delivery made in India by us some times by our network florists. Some time the delivery goes to overseas via our network florists in abroad. In this case what is the section to be maintain to show our accounts? Kindly guide me. thanks.

    1. Mudaliyar says:

      Sorry, I forgot to show the turnover, it below rs.25 Lakhs. Thanks.

    2. Did you pay service tax ? When your turnover is more than 10 lacs, you have to pay service tax .

      1. Mudaliyar says:

        Dear Chauhan,
        I have not paid Service Tax. Because My service all goes to Overseas, Hardly less than 50000/annum doing in India. Fund is receiving in FC. Thanks.

        1. Ok , in that case you dont need to pay service tax as of now ..

  112. Prasad says:

    Dear Manish,

    I am a senior citizen, entering 65 in this fin year. I was allotted a flat by VUDA ( vizag urb dev authority) for a consideration of 1.6 laks tentatively in Jan 1991. The flat after completion was registered in my favour, after cost escalation, for Rs. 3.6lakhs plus stampfee etc of Rs 36000 during June 2003. I sold it off for a consideration of 20 lakhs on 28.02.2013.

    Pl advise me what would be my tax liability? which date I should take into consideration? The date of allotment, or the date of Registration for calculation of purchase price? what is the exemption limit in case of CGS? is there any?
    Prasad

    1. It should be date of allotment , you can use the same method given in this article to calculte your tax gains ..

  113. J N GANDHI says:

    Pl calculate capital gain and tax there on.
    Purchase Year : 01.10.2000
    Purchase amount :385000
    Selling Date :25.03.2013
    Selling Price :60,00,000/-
    New Purchase :45,00,000/-
    Date :30.03.2013

    1. What problem are you facing in calculating it ?

  114. amitk says:

    Hi,
    I bought a house in Mumbai in Feb2012 for 24 Lacs excluding 1.30 lacs of stamp duty/registration, 40,000 of brokerage and 12,500 of society transfer. So the overall cost of the house is 25,82,500.
    Now in Apr2013, I want to sell it for 29.90 Lacs due to personal reason and I’ll be investing this amount immediately to buy another flat in mumbai for a price of 65 Lacs.
    In these peiord I have already paid home loan interest of 2.30 lacs, so the actual income i earned technically is 1,77,500.

    My CTC salary is 7 Lacs. I am worried about paying heavy tax for next year as I’ll be buying new house which is costing more.

    Also, my father was the co-applicant in this property, however he is not working now and do not file any tax returns. He funded me 2.50 Lacs to buy the property.
    Will his contribution be considered for tax savings?

    Please guide me the best possible way to pay less tax.

    1. The only thing which is applicable is the PURCHASE AND SELL price . The difference is your profit and it has to be added in your income and you have to pay tax . There is no way to save tax here as it was done before 3 yrs !

    2. Dear Amitk, please post the query again in forum.

      http://www.jagoinvestor.com/forum

      A workable solution is possible.

      Thanks

      Ashal

  115. Vijay Goyal says:

    Sold a residential plot for 30 lacs on 1.3.2013, purchased at 1.50 lacs on 1.9.91. Whether tax without indexation shall be 10 % or 20 % , as it proves to be cheaper

    1. Whatever is less will be applicable !

      1. Vijay Goyal says:

        I am not clear from ur reply. i wish to pay LTCG by non indexation at 10 %. Am I right?

  116. SUBHASH SHUKLA says:

    Sir,
    iI have purchased house in 7 aug 2004 Rs.532000/ (with stamp duty)
    And construct first floor in 2010 cost Rs.500000/- and bank loan taken for 400000/ and 300000/ to meet expenses. now i am selling house Rs.2300000 in mar-2013

    Is there any CGT?
    And how can i save it?

    1. Subhash

      Its already discussed on the article , what point are you not able to find out yourself ?

  117. Vipul says:

    Hi..
    I have purchased a RESIDENTIAL property in Nov. 2002 worth Rs. 3,92,130 (including stamp duty and etc.)… i sell this property in Oct. 2012 for Rs. 12,50,000….. the indexed cost is near about Rs. 7,50,000…… so my
    LTCG is Rs. 12,50,000-7,50,000 = 5,00,000
    Now i have purchased a COMMERCIAL property in feb. 2013 for Rs. 6,50,000 (including all the expenses)…
    Now the Question is… Is there any tax liability for me..???

  118. Anand Shivarkar says:

    Hello Sir,

    I have a bought a land in 2008 for 1.20 lacs and sold in 2013 for 2.50 lacs so please tell what tax amount i have to pay as capital gain

    1. You can easily calculate it from the prodecure given in the article

  119. Vikas says:

    Hi Manish,

    I purchased a flat in Pune in FY 2005-2006 for Rs 11.2 lac and sold it in the FY 2012-2013 for Rs. 40.95 lac.
    I purchased another flat in Pune itself in the FY 2011-2012 for 53 lac on loan which was prepaid in Jan 2012.(The second flat was purchased while I was still holding the first one)

    Now my questions are,
    1. Is the Long Term Capital Gain Tax still applicable to me. If it is applicatble, please suggest me the investment options.
    2. I possess another flat in Nasik since year 2005 (which makes the number of flats I am holding at the time of above flat sale – 3) Is LTCGT related to number of properties I am holding?

    Thanks and regards,
    Vikas
    msp01_2006@yahoo.com

    1. Vikas

      I think a CA would help you better in this case, He will be able to connect things and make sense of the overall picture.

  120. Rohit P says:

    Hi Manish
    I have purchassed a flat in Bhopal in Dec’2009 (Registree Date) in 11 lac including registree & all. Now I want to sell this flat in 18 lac in March’13 and taking one new flat in march’13 itself of Rs 19 lac (Including Registree & all charges) for which I will take loan of Rs 15 lac & 04 lac will be a DP.
    1) How much will be capital gain?
    2) I still have to pay tax, in case if i bought a new flat.
    3) Is it LTCG or STCG.

    1. Rohit

      1. YOu can get the numbers, by using the same method explained in this article

      2. No , if you use the capital gain to buy a new flat, you dont have to

      3. its a LTGC

      1. Rohit P says:

        Thanks Manish…

  121. Amit says:

    I bought a fliat in Mumbai in Jan2012 for 24 Lacs. Now in Apr2013 I am selling it for 32 Lacs and I’ll be investing this amount imidiately to buy another flat in mumbai for a price of 60 Lacs. Do I need to pay any tax?

    1. Surely you do ! .. this gain of Rs 8 lacs will be short term capital gain and should be added in your income .. No way to save this part of tax !

  122. Nitin says:

    Hi,

    I purchase property in May 2007 for 17,67,454 (inclusive of Stamp duty, Registration fee and Brokerage), now i have sold the same in Jan 2013 for Rs. 40,00,000. I am not purchasing Res. Property. I want to utilize that money for my personal use. how much Tax i have to pay? and if i want to put in NHA bond how much i have to put?Can i purchase property worth 12 Lakhs and use remaining money?

    1. Just calculate the capital gains as explained in this article, and that the amount you will have to pay tax on .

      1. Nitin says:

        Thanks Manish for quick response, I have calculated capital gain as per your instruction. But 2 CA’s are saying 2 different thing so i am confused. My Capital Gain comes to 12,67,022/- and Tax with Indexation comes to 2,53,404/- and without indexation comes to 2,23,255/-, so my 3 questions are 1)for paying tax i have to pay 2,53,404 or 2,23,255/- . and (2)if i want to put money in NHA bond how much ? is it 12,67,022 or 2,53,404 . (3)Instade of paying tax can i buy a property worth 12 Lacs and use other money for my personal use. I have to take decision fast because if i don’t buy property then i have to pay advance tax before 15 march. Please help.

        1. 1. 223255 .. lower is to be paid

          2. Its 2,53,404 !

          3. Yes, you can buy another property , only if you have sold the property after holding for 3 yrs !

          1. Nitin says:

            Thanks Manish for your quick reply, really appreciated. I have got the same reply for Q1 & Q3. Are you sure that your Answer for Q2? I am not doubting, but my CA says i have to put 12, 67,202 in NHA Bond?
            Please Clarify

          2. Nitin says:

            Thanks Manish for your quick reply, really appreciated. I have got the same reply for Q1 & Q3. Are you sure that your Answer for Q2? I am not doubting, but my CA says i have to put 12, 67,202 in NHA Bond?
            Please Clarify

  123. Rohit P says:

    Hi Manish
    I have purchassed a flat in Bhopal in Dec’2009 in 11 lac including registree & all, and got the possesion in Sept’2010. Now I want to sell this flat in 18 lac in March’13 and taking one new flat in march’13 itself of Rs 20 lac (Including Registree & all cherges). for which I will take loan of Rs 15 lac & 05 lac will be a DP (including Registree).
    1) How much will be capital gain?
    2) I still have to pay tax, in case if i bought a new flat.
    3) Is it LTCG or STCG.

  124. Gopal says:

    I booked an apartment in 2005 and it was handed over to me in April 2010. However the registration took place only in March 2011. If I sell the property in April 2013, will it be treated as LTCG or STCG?

  125. VASUDHA says:

    dear sir,

    I am the direct allottee of this BDA property. Got allotted in 28/03/2003 but got registered in my name in 19/05/2005
    PFA the sale deed, allotment letter and khata for your reference.

    There are no consturction or structure on this property, It is still a vacant land.

    Currently the property is under GPA in my dad’s name .
    I found a buyer for this property. He has agreed to pay 1.51 crore for this property. According to him the current book value of this property in this area (SMV Layout 3rd block) is Rs. 1300 per sft
    The book value may come around 50lakhs. So he is saying he can register the property upto 50 lakhs and remaning he will pay by cash.

    Planning to have the sale agreement by mid feb 13 and complete the registration by April 2013.

    I have following questions:
    1) If I complete the registration by April 2013, what will be the capital gains on this property?
    2) Since I have provided GPA to my dad, will the sale proceeds will come to me or this can be handled as my dad’s transaction?

    Thank you

    1. Vashudha

      I think a better reply will come by discussing it at our forum , please start a thread there – http://www.jagoinvestor.com/forum/

  126. pattni says:

    My father gifted me a flat in 2011 April. The stamp duty was calculated on Rs 3300000 from RR ,as the building is 40 years old. Actual price at the time was 80 to 85 lakhs. Now a flat is over 1 crore. It is going to go for redevelopment. In five years time the price will be much much higher. How will my capital gain tax will be calculated ? Can i avoid capital gain tax, as i am a British citizen and the flat has been gifted to me.

    Thanks in advance for any guidance.

    1. No you cant escape the tax like this .. its very simple .. you bought it at 33 lacs and then you will sell it at some PRICE .. so capital gains tax has to be calculated just like its shown in this article

  127. Wriju says:

    Hi Manish,

    The excel file hosted on zoho is really helpful, thanks for sharing it.

    I wanted to put in the CPI figures from 2009-2010 onward. Any known sources?

    1. Thanks for appreciation .. find out the info on net, you will find that info !

      1. Wriju Bharadwaj says:

        Hi Manish,

        One question regarding taxation with v/s without indexation which one applies to cap. gains from sale of residential flats?

        Plus are there any specific benefits for senior citizen women.

        On a separate note, I noticed the sheet on ZOHO has some missing/hard-coded values, I have updated a copy of the sheet but
        a. I don’t whether the calculations (post changes) are correct
        b. how can one update the copy on ZOHO so that everyone on this site can take benefit???

  128. soumya says:

    Hi Manish,
    I am investing in long term debt fund, and have been continuing for more than 1 year. I don’t have any plan to withdraw the money and wil keep it invested for next 5-6 years. I have following 2 questions:
    1. Like FD, should I pay income tax every year or I should pay it during redemption.
    2. For Rs 1 lac, if I gain 10% return per annum, how much tax should I pay after 5 years, I fall under 30% tax bracket.

    Thanks for your reply.

  129. Sunil says:

    Hello Manish,
    I purchased my property in 2005 and i sold my property in 2012. Meanwhile in Nov 2011 , i purchase another propery. Can i get exemption on capital gain?

    1. I dont think it works that way , you have to use that money of capital gain for the second house, I think you should discuss it at our forum with other members . https://www.jagoinvestor.com/forum/

    2. sanjeev says:

      dear Sunil,
      the answer to your question is yes, you can get the tax exemption, as it is clearly mentioned that the property should be bought before 1 year or within 2 years after the capital gains from th sale of the property

  130. Rajagopalan says:

    Dear Manish,

    CPI starts from 1981. What would be the CPI for property purchased earlier than 1981, Say 1970?
    Thank you

    1. You need to contact a valuer to find out its worth in 1981 and then that will be the base for 1981

  131. Raj S says:

    Manish –
    I own a plot since the 1970s. We built on it in 1990 through a builder, and got 1 flat + some compensation for it. The plot is still in my name.
    I want to sell the flat + title of the plot (even though FSI is consumed). Calculating the indexed value of the flat is not a problem since I had got a valuation done in 1991 for wealth tax reasons.
    I am getting conflicting reports on the indexing of the land, because the land is on 998 year lease. Can I index leased land, or does the entire compensation attributed to land have to be reinvested?
    Thank you.

    1. Thats out of my knowledge .. BEtter discuss it here on our forum https://www.jagoinvestor.com/forum/

  132. Narayan says:

    Dear Manish ji,

    I have certain queries with regards to Long Term Capital Gains arising out of selling residential properties and buying new residential properties. The case is as follows:

    Residential Property A – Father, Son 1, Son 2 (Joint Owners)
    Residential Property B – Father, Son 1, Son 2 (Joint Owners)
    Residential Property C – Father

    We wish to sell these 2 residential properties, namely A & B which are in our joint names. We will be eligible for Long Term Capital Gains as the period is more than 3 years now.

    I have the following questions:

    1. We intend to buy 2 new under-construction properties in the name of each son.
    2. We intend to buy 1 ready-to-move property in the name of father.
    3. Is the time-frame for the possession of the under-construction 2 years or 3 years from the date of sale of old homes? How is the possession date calculated? Is it mentioned in the agreement done with the builder or is there another way?
    4. What happens to LTCG exemption if the builder delays the possession?
    5. Since the father also has another residential property C, can he buy another residential property to take benefit of LTCG exemption under section 54.

    Thanks.

    1. Narayan

      This needs more discussion , please open a thread on https://www.jagoinvestor.com/forum/

  133. Mudaliyar says:

    We are paying EMI for my flat approx 30000.00 which is includes approx 28000 interest 2000 principal. Our total income is approx 3 laksh each person per annum, (Total 6 lakhs). However the join propery EMI is paying by both candidates My wife and my self. We do not want avail the interest excemption as our income is not taxable. Can we add this interest into our Flat value (asset) without using our exemption?

      1. Thank you somuch for your guidence

  134. Suddeshna says:

    Hi Manish

    Tax without/with indexation @10% or 20% applies on capital gain right?How can 10% of 428826 be 85765 for taxation without indexation?

    1. Did I say that somewhere in article ? Can you point me to that !

  135. vijay patel says:

    can i gift to my house property ( approx value 10 lakhs ) to my elder brother , if yes what kind of tax liablity to my side and brother side ,this propety purchase in 1997 value Rs 191000 and renovatin & constcution cost 325000 in 2002 that time jont family after that i m purchase new house in 2007 name of my wife ,(Rs.9 lakh, my wife also teacher ) and today i want to sale this property to my brother this property vale of 10 lakh but i sold to my brother only 5 lakh can it possible if yes how much tax libilty to my side and othewise i not sold propety to my brother can i gift to my brother ,if yes how much tax liablity my side .

    1. The tax liability will not be on your side if you gift it to your brother and if he sells it , then its totally a different thing . BUt if you sell it , you need to pay the tax .

  136. amit says:

    Amazing Blog and very very informative !!! Great Going Manish…..

  137. Kumaran R says:

    Hi Manish
    I have Purchased a flat in 2004 @ 15Lakhs ( 12.5 Lak Home Loan taken for this property ). I sold this in 2012 @ 73.5Lakhs ( Paid 9.4 Lakhs to the Bank as Outstanding Pricipal ). So Net in hand for me is 73.5-9.4 = 64.1 Lakhs

    How do I calculate Capital Gain because though the sell price is 73.5 Lakhs, what I recieve in hand is Rs 64.1 Lakhs. So what will be my capital gain ?

    Thanks..

    1. All you need is SELL price which is 73.5 lacs and the indexed cost price, which in 15 lacs indexed as per the procedure given in the article .

  138. suresh says:

    Hi Manish,

    Not everyone would like to share the knowledge or provide basic information to public. Which you are doing t, my sincere appreciation for your efforts.

    My query

    I bought a house in the year 2005 for 10 lacs and selling it for 25 lacs in 2012(oct).

    #1 For the financial 2012-2013, whether the same 10%( wihout index) and 20% with index is applicable. or Should i consider my 30% tax bracket to calculate the LTCG tax.

    #2 Few auditors claim that we have a excemption upto 23 lacs, meaning any sale within the limit 23 lacs will be exempted from capital gain. If this is true then i have to calculate my capital gain only for 2 lacs

    #3 Till now i was under the impression, i need invest the sale proceeeds only in a existing built house. But from this site, it looks like i have to invest in a new property(Land or house)

    Please clarify.

    1. 1. Yes it will be applicable

      2. I have never heard this, I dont think its true

      3. Yes, new property !

  139. Chinmay Patel says:

    Hi,
    I purchase commercial property in 2006 in Rs. 9,40,000/- on this property I take Loan Rs. 14,50,000/-… Now, I sale this property in 2012 in Rs. 22,00,000/- .
    How can I save tax???
    Can I calculate interest on that Loan ???

    1. It does not matter what is the loan amount , all you need to see is the buy and sell price only . Use the indexation method given in this article and find out the capital gain part, if you invest that much in some other real estate , then you can save tax

  140. sachin says:

    Hi manish,

    Please help me to calculate the property gain tax on below deal

    Property purchase in 2009,
    Purchase price 12,65,000
    selling property in 2012
    Selling price 32,00,000

    New property buying in 2012
    New property cost 32,00,000

  141. sachin says:

    hello,

    I want to know property gain tax on my beow deal.

    1. In 2009 I bought property in my hometown for 12,65,000, after buying that i did over 2 lacs of expenses in that property.
    2. Now i’m selling it to 32 lacs within 1 week or 2.
    3. By using that money i’m buying a flat in pune for 34 lacs. in a month. pune property is finalised, no payments done.

    How much tax i need to pay ?

    Thanks & regards,
    Sachin Tikore
    98810 63750

    1. BEtter start a thread on our forum to discuss and calculate this – https://www.jagoinvestor.com/forum/

  142. neeraj says:

    we have purchase a property for rs 300000/- (3lac) in year 2003 what is the cost of this property today

    1. It will depend on the market price and location !

  143. anil kumar k says:

    dear manish
    i purchased a flat in hyd and registered it in jan2010 for rs 40lacs. i intend selling the flat after jan2013 for 65 lacs.what is capital tax gains. i am planning to construct a house nearby. need tips to pay nil tax. regards anil

    1. You tax will depend on the CII index on 2013 , But It will be somewhere 17-18 lacs, all you need to do is use this money in some other real estate investment .

  144. Prashant says:

    Hi Manish,

    After lot of searching on the internet, let me complement you that yours is one of the easiest and active blog over the net…so good work for novices like me :-). My query is as below

    Background:

    1) Bought a flat @ 31.50 lacs (June 2010),
    2) Selling Price @ 51.50 lacs( Sept. 2012).
    3) Capital Gain = 20 lacs. (assume after indexed calculation)
    4) If I am again planning to buy a new house of 40 lacs now (within 2 months of selling above property), then does it mean I will have to pay NO tax since I am reinvesting my Capital Gain of 20 lacs back into the real estate
    or
    Will I have to pay tax, as I need to show the entire investment of 51.50 lacs collected by selling the above property.

    Regards,
    Prashant Chauhan

    1. Prashant

      You will have to pay tax on 20 lacs profit, because the capital gains benefit is available only when the house is sold after 3 yrs of possession , but in your case its less than 3 yrs !

  145. Mandal says:

    Hi,
    I have bought a house in pune in 2005, on 6 lakhs. 6 lakhs was taken as a home loanfrom icici bank. Now in august 2012, I have paid 2.5 laks to bank to foreclose the loan. I am planning to sell the house in Ocotober ,2012 for 20 lakhs. Can you please tell me the tax I need to pay. can I get any exemption for the amount 2.5 lakh spent for foreclosure. I am paying 50000 as brokerage to sell the house and 25000 for NOC for co-operative housing society.

    1. you will not get any consession in that , you can calculate the tax to be paid based on the capital gains, which is explained in this article

  146. DP says:

    I had purches flat in Dec 2010 by 40 lac and and sold in May 2012 by 45 Lac In the next month i buy the new flat on 40 Lac. Then how much capital gain i need to pay?

    1. How much was your captial gains ?

  147. Supreet says:

    Hello Manish,
    The information posted on this page is really very helpful and simplifies the way one can explain CG calculations.
    My only question is, I plan to sell a Flat this month (Sep 2012) which was purchased in 1994. In order to calculate the Purchase cost with Indexation, what will be the CII for the current financial year (2012-13). Has it been released by the Govt., and if not when is it released in general.
    Thanking You in advance.

  148. jatin sehgal says:

    Hi, I purchased a property in May 2012 for 37 lac. Now i want to sell the same and price i m getting is around 50 lac. Can you please suggest me what will be the short term capital gain tax? and If i want to do trading in the property, what will be the tax implication?

    1. You need to pay tax on the profit of 13 lacs, there no tax saving you can do if the period of holding is lower than 3 yrs

      1. jatin sehgal says:

        Thanks for your reply. but do you have any idea what will be the tax amount. Correct me if I am wrong. will it be 30% of 13 lac? or there is some other calculation for it

        1. It will be added as your income for current year . If you are in 30% bracket , then yes , it will be 30%

  149. Mohammed Alam says:

    Hi

    I had booked a flat at the project launch of a builder in Jan 2007. I paid a total of 50 lakhs over the next 2 years i.e till Jan 2009 (25 lakhs each year). This included all costs except the registration and stamp duty charges. I did not register the flat and the same remained unoccupied till I sold the same (assigned my rights) in May 2012 for a total consideration of 58.5 lakhs. My queries are-

    1. Will this be taken as CG/CL because the property was still unregistered ?

    2. Would this be taken as any normal business transaction wherein I invested 50 lakhs and made a profit of 8.5 lakhs ?

    3. If taken as a business transaction, will any indexation come into play ?

    Thanks & regards.

    1. The indexation will not apply in my opinion. It should be considered as regular business transaction , but it would be good idea to ask it on forum https://www.jagoinvestor.com/forum/

      Manish

  150. bpn says:

    In message no. 405 ,pl.read value of 1981 Rs.741000/00 as per valutaion report.

  151. bpn says:

    sir,
    1974 purchased ind.unit at Rs.44000/00;improvment chgs.211300/00 in 99-00 plus 175500 in 06/07;spent;
    Sold 11-12 net 9131000,what is c.g./c.g tax payable.
    Thanks.

  152. Sumit says:

    Hi dear All,

    I have a unique problem in front of me. in August 2011 i bought a house and want to see it in August 2012 without even taking possession of the property. i have gained a very small amount (alomost nil) in this transaction.
    1. Do I still need to pay Short Term CGT if yes then how to calculate the same.
    2. Can I take the proceeds in cash and deposit the same in Bank without any harassment by Banks.

    Pl reply ASAP…

    BR,

    Sumit

    1. 1. If there is any profit, then you need to add it in your income for the year and pay tax as per slab

      2. That has nothing to do with anything , see how you want to get paid by the buyer , it is between you and bank

  153. Manyam says:

    Really very good information Manish, Btw is there any reliable link to refer latest CII values from inception.. seems above list until 2009 only..

  154. Maria says:

    Manish, my mother sold a couple of properties this year:
    1. plot of land bought 2005, at 6lakh (registered@3L), sold 2012 for 65L (regd for same)
    2. House in my deceased father’s name, constructed in 1993 for Rs.10L (site+constr.), sold 2012 for 49L.
    Q: since the house was in my father’s name, seller was listed as mother+4 children. Money was distributed 10L to each member, so do all of us have to work out LTCG separately? Mum & I are buying an apt with her profit from the site plus my share of the house sale- will registering in both our names be enough to claim exemption from tax?

    1. Maria

      This is a little tricky .. this needs few more minds to give answer – request you to ask it on our forum – https://www.jagoinvestor.com/forum

  155. S Singh says:

    Hi.

    I have an apt for 4 years which I want to sell now and have a few questions –

    1. The cost of the house was 18 lacs (I have receipts from builder) but the registeration was done at 12 lacs as per builder’s letter. What will be the cost of acquisition in this case? 18 or 12 lacs?

    2. I did wood work and put electrical fittings of 2 lacs on getting possession of the flat. Is this included in the flat cost?

    3. I paid 2.3 lacs as Interest on home loan till possession date. Is this included in the flat cost?

    1. S SIngh

      1. 12 lacs

      2. No

      3. NO

  156. Kiran Patil says:

    Dear Manish
    I was read all the above Q&n to find out my query that is
    My father was purchase a house in 1996 at the cost 1,60000/- and now in July-2012 I was sell that house at the price of 7,70,000/-. And now I want to invest the entire amout in resel property which is 6 years old.
    Then in that case can I exempt. from Long term captial gain tax?

    1. Yes , you are exempt from it , In fact just see how much is the indexed cost ? If indexed cost is more than 7,70,000 , then there is long term capital loss and you can also adjust it with some other capital gain !

      1. Kiran Patil says:

        Thanks.

  157. Srinivas says:

    I am curious to know how pending loans are treated when i sell a house.(Hypothetical).

    I puchased a house in 2008 Jan and sold it in 2013 April(after Completing 5 years).
    I invested 26 lakhs for the house(10 loan from father and 16 self)
    By the time of sale, i repaid only 5 lakhs of loan. I sold the huse for 4500000. Would like to know what is my CG. specifically, where there will be any impact of my pending loan.

    Thanks

    1. Its very simple

      Your cost was 26 lacs , but the indexed cost will be different , lets say 40 lacs (example only) , now your SP = 450000 , so CG = 5 lacs !

      1. Srinivas says:

        It is logical.

        Thanks for the reply.

  158. RAKESH says:

    I HAVE SELL PLOT THIS YEAR.PURCHASED IN 2000.CAN WE INCLUDE COST OF BOUNDARY WALL AND TEMPORARY STRUCTURE MADE ON IT (BEFORE SELL) WHILE CALCULATING CAPITAL GAIN.

  159. mohamed tahir says:

    Dear Manish,

    Very helpful tips from your end.
    Could you please help us for calculating the LTCG? our company had purchased 32.08 Acres of Agricultural land in 1982 at Kushalnagar, valued at 16,87,750 as per BS. We now sold 8.08 acres for 622 lacs including Buildings. what is the capital gain payable and how to avoid taxes and any tips to reinvest the same? my mobile no. 98459 18669.

    1. This is to complex and big thing to be discussed at blog, your company must have a CA right ? better involve him !

  160. vikram says:

    I plan to sell my house, which i bought in 07-08 for price of 11 lacs. Not my selling price is 12 lacs. which means on CII, there is a loss of 3.6 lacs. And i want to show this in my returns to save tax on salary.
    Can i ask my employer to take this calculations and accordingly deduct tax.

    Secondly, i want to buy a new house from the proceeds. Is that ok, with the above points

    1. Vikram

      It can be adjusted with only a long term capital gain , not from the salary . So if you have any kind of GAINS , then this can be adjusted . If you do not have it in this year .. better mention it in the tax return, so that you can claim it later .

      You can buy the next house using this , but there is no taxation angle .

      Manish

      1. vikram says:

        Hi
        When u say, mention it in returns, i didn’t understand.

        Doesn’t it get adjusted with total taxable income ?
        And how can i claim it later on ?

  161. Dnyaneshwar Somase says:

    I currently have a buy to let flat in my sole name/mortgage. I want to transfer the property to my wife name.

    Are there any other implications e.g. stamp duty, I assume not as it’s between husband and wife?

    Many thanks in advance

    1. I dont think so , the property transfer does not assume any kind of relationship like this , you will have to pay the charges

      1. Dnyaneshwar Somase says:

        Thanks Mr. Manish for your reply.

        Is their gift deed invloved?

        1. Why gift deed ? Its just a normal transfer of property .. you should meet a property related lawyer for this , dont try to save the fees, you will save much more by goign to him, if you make some mistake, it will cost you in lacs

  162. Dnyaneshwar Somase says:

    Hi Manish,

    I purchased a Flat costing Rs 4.75 L in year March 2003 on my wife name, she is housewife, same flat, we sold in Rs 17.40 L in May -2012. I paid housing loan interest around Rs 2.0 L for around 8 years. I also paid stamp and registration charges Rs 40000/- + Electricity charges Rs 40000/- during purchase. For calculating the purchase price, whether stamp duty & Registration charges, electricity connection charges as well as Interest paid on Housing loan considered for calculating purchase price of flat. So, i can calculate the indexed purchase price on considering above factors( i.e. Stamp duty& Registration, Electricity connection, Interest Amount on Home loan, …etc)

    Secondly, I bought a new flast costing Rs 40 L with registry( Jan-2011) on my name, with home loan of Rs 30 L with joint Home loan account with my wife. Completion of flat is expected in Oct-2012, I have to balance amount Rs 10 L from Home loan account before completion. Whether I can use flat Captial gain amount received from above flat of wife name, to pay balance amount to new flat.

    Please reply in details.

    Many thanks in advance.

    Dnyaneshwar Somase

      1. Dnyaneshwar Somase says:

        If you can explain the details, it will be useful

        I am able to address my query on forum.

        Please revert.

  163. Naresh says:

    Hi Manish (Repeating my question)
    Thanks for all the info you posted.
    We booked an apartment in 2006, got possession in 2012 and if we sell in 2012, I have following questions-
    1. is it long term or short term gain?
    2. how to calculate the indexing costs for the amount paid from 2006 in installments?
    Thanks
    Naresh

    1. Paras says:

      Naresh, regarding the point 1, its LTCG or STCG, would depend on the date of registry of the flat. So if you got the possession in 2012 and assuming you got it registered in 2012, it would be a STCG if you sold in 2012 itself.
      Regarding your point 2, If you got it registered in 2012, then I think indexing would not be required, as the cost registered would be used for CG purposes.

      Thanks!

      1. Rajesh D says:

        Hi Manish

        Can you please respond.
        I have already provided the registry date. Is the 3 yrs period for LTCG from date of booking(first installment), date of Registry or date of possession.

        Thanks

        1. Rajesh

          It would be mostly date of possession !

      2. Paras

        Are you sure that the registry date is taken into consideration , because on one of the forum , I read that its not that date but some other date !

        1. Paras says:

          Manish, I am not sure but read it in one of the forums tha registry date is taken into consideration. Now I guess a CA would be the right person to get a response on this.

          1. Yes , A CA or more than than an expert in Real estate would be more authentic in his answer

    2. Rajesh D says:

      Hi Manish

      Is the 3 yrs period for LTCG from
      date of booking(first installment), or
      date of Registry or
      date of possession.

      Thanks

      1. Rajesh

        There is confusion on this, but mostly its date of Possession

        1. Girish Hodlur says:

          Hi Manish,

          Are you sure its the possession date. I was told the date of purchase (generally the date the agreement gets registered) is to be taken for all calculations purposes. I checked a couple of websites which show the LTCG calculations and eveery one of them talked about the date of purchase rather than the date of possession.

          1. MS Gurjar says:

            I have question regarding long term capital gain tax in reference to sale the land.
            In which condition capital gain tax calculate without indexation? And with indexation? if both have wide difference, which is counted ?

            1. MS

              The lowest will be counted !

          2. Girish

            It might be the case then … Some websites also mentioned that the date of registry is to be taken ..

    3. Naresh

      1. Long term

      2. It will be registered amount , not the actual amount paid in installments

  164. Rajesh D says:

    Hi Manish

    Your articles are very informative and sincerely put across.

    I have a small query.
    I had booked my flat in Pune in Apr 2008 and Registered in Nov 2008.
    Now. I have received possession in March 2012.

    I would like to sell at the earliest and buy another next door, house in the city I stay.
    When can I sell it to qualify for Long Term Capital Gain.
    Would it be 36 mths from Nov 2008 or from March 2012.

    If I sell in April 2012, and if it is Short term CG, I can reinvest in another house under section 54.

    Thanks in advance.
    Regards
    Rajesh

    1. Rajesh

      I thikn you have crossed 36 months of time now, so you can sell it and as you will be reinvesting the money in new flat , dont worry about the tax part 🙂

  165. sagar says:

    hi,
    my father sold his ancient house for 115000 in april 2012 propery purchase in late 1965 by my grand mother which transfer on my father name in 1998 via civil court digree (other process to name house on ur name without and registration fee) now how much tax we had to pay, we even spen lot of money to repair that house time by time but how to show how much we spend

  166. Vijay says:

    We have purchased 500 shares at very low rate in between 1978-1993. The company is delisted now with price of 4000 each. (Reverse Book Building Process). I want to ask whether LTCG tax is applicable or the amount is TAX-free?

    1. Vijay

      Its a tough question , not sure if the tax will be applicable considered the Company status at the time of buying or Selling . please post a query on our forum for a right answer : https://www.jagoinvestor.com/forum

  167. Rajesh says:

    I had purchaged house in 2003 at Rs 4,80,000/-. Now in 2011 January,I have purchased one more house for Rs 22,00,000/-.But I paid only booking amount of Rs 3,00,000/-in 2001 January.The registration for the new house will be done in 2012 May. I would like to sell my old house property in July’2012 for around Rs 17,00,000/-. Can you please help me to know whether the tax on capital gains by selling old property can be exempted by purchaging my new property.

    1. Yes Rajesh

      You can buy the new house with the amount you get from your old house. No tax 🙂

      1. Rajesh says:

        Thank you Manish,

        Your reply in this regard is verymuch appreciated.
        Now can you help me know some more queries regarding the new transections?

        I will sell my existing property in July’12.The amount I ‘m going to receive Rs 17,00,000/-.
        For new property(Total Rs 21,00,000/- including stamp duty),I have booked in 2011 Jan and booking amount of Rs 3,00,000/- is already paid to tyhe builder. And registration of the new property will be done in May 2012. Can you please answer following queries:
        1) Should I deposite the amount in a perticulat bank account and the checked to be given to builder as and when required as per construction stage?
        2) To get the tax rebate, when I should complete the payment to the builder for the new property?

        Regards,

        1. Rajesh

          These questions are better taken by a lawyer , he will be able to optimize it . Note that when these kind of numbers of involved , better spend few thousands and take an expert help on this. You will save more money than you pay for this.

          Manish

          1. Rajesh says:

            Dear Manish ,
            Thanks a lot,

  168. MEHUL says:

    Dear Manish,

    I have gone through this whole forum for the first time today. Remarkable experience…. with all the new queries posted each day. God bless you. Keep up the good work.

    Now, my small query to you…. I have purchased an apartment (under construction) this month with a price tag of 40 Lacs and the possession is going to be likely in Q3 2012 (around September). Now moving on to next FY in June 12 I probably may sell the property and will get around 60 Lacs price. Please let me know how much I would pay STCG. Is it going to be indexed or without index. What is the difference between two in short term. If in case, with 60 Lacs amount, I would go for another under construction linked plan apartment within a month of selling, then will I be able to save total tax on my capital gains. Please provide some best practices in order to avoid maximum tax on capital gains in short term.

    Also, I heard that I also need to pay the advance tax in the month of June itself once property sold otherwise the remaining months will be charged @1% interest. Kindly also put some light on it.
    Mehul.

  169. Naresh says:

    Hi Manish
    Thanks for all the info you posted.
    We booked an apartment in 2006, got possession in 2012 and if we sell in 2012, I have following questions-
    1. is it long term or short term gain?
    2. how to calculate the indexing costs for the amount paid from 2006 in installments?
    Thanks / Naresh

  170. DEEPAK says:

    Hello Manish,
    I would like to know about the capital gain and the tax i have to pay, if any. I booked one 3BHK in a new builder project under construction linked plan in 2008 and due to undelivered status of the project, sold the same in December, 2011 on the same price which paid by me till December, 2011 (37 Lacs). So, no registration happened but only payments gone through Construction Linked Plan. Now. with this 37 lacs, bought a new apartment (also construction linked plan) for 41.60 Lacs. The possession will be offered in December, 2012. Do I have to pay any income tax since I have already reinvested the whole amount (plus along with my other savings of 4.60 Lacs)?,
    Thanks in advance
    Regards,
    Deepak

    1. Deepak

      As registration was not done , offically there was no house buying at all .. Right ? In that case it becomes a little difficult to guide on the exact status

      Manish

  171. My father bought a flat in 1974 for Rs 44000.If he now sells it for Rs One Crore Thirty Lakhs ,what will be the LTCG tax.There is no CPI available for 1974-75
    2. Should he pay tax with indexation or without indexation
    3. He is 97 Years old

    Thanks

    1. Arun

      IN that case you will have to appoint a valuer who will find out the cost of the property on 1981 and then that will be the base price . Also the tax will definately will be there , but that can be avoided by investing in a new property !

      Manish

  172. vallari says:

    are the registry charges included in the cost of property?

    the property was in the name of my parents and after their death my siblings made the gift registry of the same in my name will these registry charges be also included in cost of property

    1. Vallari

      Yes . Registration charges will form the part of the cost of the house

  173. Sunita says:

    Dear Sir,
    I am govt. employee.My salary is 30,000 p.m i.e.3 Lakhs 60 thousand p.a.
    In jan,2010 I bought a flat @ 6 lakhs (5 lakhs from HDFC and 1 lakh from personal saving).Now I sold the flat in Jan 2012 @ 9 Lakhs.I have used these 9
    lakhs in repayment of home loan i.e 5 lakhs and rest of the 4 lakhs used in buying the new flat. which i have bought @ 17,50,000 in the next week of selling the first flat.Rest of 13,50,000 arranged from HDFC bank.Now, If i am taking my salary as income then I will have to pay no tax for current financial year as i have invested One lakhs in LIC and bonds etc and payed the home loan interest. But Now after reading your discussion I understand that I will have to pay STCG.
    Now,please help me for following questions:
    1) What will be my total income for tax.Is it including my salary and profitable amount both from selling the flat or only the profitable amount from selling the flat?
    2)What will be my taxable income and taxable slab or %(percentage) for paying the tax?
    3) Approx how much tax I will have to pay for current financial year?
    Please help me. Thanking you in advance.
    Thanks,
    Sunita.

    1. Sunita

      1. Your salary + profits from house selling

      2. that depends on the income only .. upto 5 lacs it wouldbe 10% , 8 lacs 20% and above is 30%

      3. same as 2

      Manish

  174. K. Singh says:

    Dear,

    I have a residential house purchased in 1975 by my deceased father. My mother is living with me. Please advise if my mother sell the property and gift me the sale proceeds and if I can purchase another residential property or construct a house from the sale proceeds gifted by mother to avoid LTCG.

    Furthermore, if my mother will the property in my name, can I use the sale proceeds of the property to purchase another residential property or construct a house from the sale proceeds to avoid LTCG.

    I would appreciate your reply.

    Regards
    K. Singh

    1. K singh

      Right now , who is the owner of the house , is it your mother (as per WILL) , else you both are the owners . You can sell it off and use the proceeds to buy another house .. there will be no LTCG

      Manish

  175. Achal Malhotra says:

    Excellent blog for lay-persons.
    My question: I acquired a flat in a Group Housing Society for Rs 10 lacs; sold it in Dec 2011 for Rs 67 lacs and within a week purchased a PLOT of Land for Rs 98 lacs . Am I required to pay ant LTCG tax?
    Also I plan to dispose of another flat and propose to use bulk of the sale proceeds for constructing a house on the plot of land purchsed > What impact, if any, will the second transaction have on the first transaction?
    Thanks in anticipation. Achal

    1. Himanshu Goel says:

      Capital gain tax is exempted in following cases:

      1.If the proceeds from sale of a property are invested back in property within 3 yrs of the sale which stands true in your case.Hence no LTCG on your first property.

      2.Now about your second plan, the capital gain arising from second sale have to be utilized for construction of the new house within three years from the date of transfer of the second property.

    2. Achal

      No you dont have to pay any long term capital gains tax, if you had hold the first house for atleast 3 yrs ..

      Now coming to your question, as you are planning to make two houses (one by purchase , which you already did and second one by constructing it) , I think what you can do is claim the deducations on first house and enjoy the unlimited interest deductions on second house , assuming you took home loan for that

      Manish

  176. Sunil Kumar says:

    Hi Manish
    I am working in the MNC in India. Company has given the option of ESPP. I am purchasing the company stocks from last 4 years. These stocks are purchased in USA market. Now i wanted to sell out my stocks. I wanted to know the following things:-

    1. Is Shares purchased 1 year back should be considered as long term or not? Is there any tax involved on it.
    a. Is this is considered as long term capital gain?
    b. Is this long term capital gain can be used to purchase a house to offset the
    income tax?
    c. These stocks are purchased in every quarter (3 month). Some quarters are
    having profit and some having loss. How to calculate the amount to
    investment for house to offset tax.

  177. Sujitkumar says:

    Hello Manish,
    I would like to know about the capital gain and the tax i have to pay if any. I booked 1 2BHK under construction apartment on 1st Dec 2007 and got the allotment letter. Then we registered the agreement on 21st Dec 2007. After registration I paid FULL balance amount by loan in Jan 2008. I got the possession of the same property in May 2010. Now in Jan 2012, I am planning to sell the apartment and would like to know the capital gain after sell will be considered as Short term Capital Gain OR Long Term Capital Gain? Do I have to pay any income tax?, if I reinvest the full capital gain immediately to buy the new apartment for my own stay?
    2nd related question is, how the Period of Holding is calculated, is it from date of Registration or from date of actual possesion.

    Please advise and thanking you in advance.
    Regards,
    Sujit

    1. Sujit

      Look at this : http://www.indianrealestateforum.com/gurgaon/t-long-term-capital-gain-calculation-property-14953-page2.html

      The holding period is from the date of allotment .. so you will have to pay long term capital gains .. but if you invest that money in next 2 yrs . you will not have to pay that

      Manish

  178. harry says:

    Hi i wanted to ask something diff from the topic above. I have sold my ancestral property and the registry amount is X which is same as the govt records for that area( so no capital gain). If i keep that amount and do not buy land for it then it will be considered as my annual income but if i buy the NHAI bonds issued on dec 28 then do i still have to pay the tax on the X amount ? or the tax will be exempted on the X amount since i have invested in these bonds ? Thanks in advance !!

    1. Harry

      Note that these bonds are not going to give you any tax benefit . these are not those NHAI bonds which give you capital gains exemption rules , those are different bonds from NHAI .

  179. ram says:

    What is the date of purchase of the real estate property? Is it date when the agreement is signed between the builder and the purchaser or the date when property is registered at the registration office? Are short term and long term capital gains rules are same for Resident Indians and Non Resident Indians/ Persons of Indian Origin Card Holders (PIOs)?

    1. Ram

      The purchase date will be considered as the registration date … and everything is same for resident/NRI/PIO

      Manish

      1. ram says:

        Thank you, Manish for the information.

        Will it be possible to get IT regulation on this?

        Kind regards,

        Shashi

        1. Ram

          What you do mean ? I didnt understand what you actually want ?

          1. ram says:

            You are saying purchase date would be considered ‘Registration Date”. I am asking Income Tax Regulation/Section to that effect if you can quote to back up your swtatement. The Tax Court in India has found the purchase date when the agreement is made. Please refer to

            http://www.indianrealestateforum.com/gurgaon/t-long-term-capital-gain-calculation-property-14953-page2.html

            1. Ram

              Thanks for that link .. There is more confusion when I read it as there can be different rules depending on what kind of property and when you bought it , I strongly feel you should talk to a tax consultant

              Manish

  180. Sudeep Jain says:

    Hi,

    Suppose I have bought a flat @ 25L via Home Loan. For 3 years I have paid home loan interest i.e. 5L (via EMI). After these 3 years the flat cost @ 40L. Now I would like to sell this flat so while calculating the Purchase price can I consider the home loan interest (5L) as well i.e. Flat Purchase Price (25L) + Home Loan Interest (5L) = 30L, because I see home loan interest as a loss on property. Will I get this as a benefit/rebate in tax calculation?

    Thanks
    Sudeep Jain

    1. Paras says:

      Sudeep, 5L cannot be considered to include in the cost while calculating it for the Capital Gains purpose. Obviously, its a loss on house property, but this deduction has already been taken u/s 24(b) for which the limit is 1.5L for self occupied and no limit for a rented property. You cannot claim benefit twice on the same loss.

      Thanks
      Paras

      1. Sudeep Jain says:

        Thanks Paras, you have a valid point.

  181. Sridhar says:

    Hi

    I am still confused whether Capital Gains tax on a Property (House, Land, Comm Property) can be paid considering lowest of the two i.e. with indexing(20%) and without indexing options(10%).
    Typically when there is huge appreication, paying 20% tax with indexing will always be higher than paying 10% tax without indexing. So without indexing would be the way to go.

    But I am unable to find a link to the tax section which explicitly states that we can choose among the 2 options.

    Can you pls put the link here, where it says the above.

    Also i checked with 2 tax advisors (not sure of the repute) , and they said 10% is not correct, we have to pay 20% on indexed cost, if its a sale of real estate after 36 months of aquisition.

    Could you pls clarify

    1. Sridhar

      I am not sure of the link , but you can take that on rocks .. you can claim the minimum of the two , many people are doing that its mentioned on TV shows many times .

      Manish

  182. Prabhat Sikdar says:

    Manish

    Any good FMP’s in market now for NRE investors

    1. Prabhat

      You will have to search on net for new FMP! . We dont update that

      Manish

      1. Prabhat Sikdar says:

        Thanks

  183. Prabhat Sikdar says:

    Hi Manish

    I want to know if NRE’s can apply in FMP’s and after the FMP’s mature will the proceeds be credited in NRE account. Also if there is any tax applicable after 365 days which means of long term capital gain.

    Also kindly let me know if E- Silver sold after 4 years attracts tax, if so will it be after indexation.

    1. Prabhat

      Note that FMP’s are mutual funds and as per the law , NRI’s can invest in MF’s from any kind of account and the proceeds will be paid back in that same account .

      Manish

      1. Prabhat Sikdar says:

        Manish
        Many thanks for the information.

  184. shashank kapshikar says:

    i have purchase aflat in march 2011 and want to sell in december 2011 or jan 2012. oteother than builders cost i have incurred expenditure on REGISTRATION, STAMP DUTY VAT AND SERVICE TAX , FOR COMPUTATION OF PROFIT(capital gain ) WHAT WOULD BE COST OF FLAT, IT IS EITHER ONLY BUILDER’S COST OR OTHER EXPENDITURE WILL ALSO BE CONSIDERED. waiting for reply thanks.

    1. Shashank

      Note that in your case there will not be any LONG TERM CAPITAL GAIN , all you need to do is SELLING PRICE – COST PRICE , where SELLING price is the price at hwich you sold and the cost price would be builders cost + registration cost + stamp duty . what ever is your profit will be added to your income and taxed at your tax slab rate . this is because indexation is applicable only after 3 yrs

      Manish

  185. Krishna says:

    Good day Manish Chauhan,

    My query is the same as comment # 28. How is indexation treated for residential house purchased before 1981-82?

    House purchased in 1951 for Rs. 16,000/-
    Transferred to my Father by Will on 1956
    Sold by my Father in Oct 2011 for Rs. 95,00,000/-

    Please clarify. Thanks.

    1. Krishna

      In that case the value of the house on 1981 as per municipality (hire a VALUER) , will be treated and your buy date will be treated as 1981 . then do the numbers

      Manish

  186. Manish B says:

    Great article Manish. Still have a query. Is there a difference in computation if I sell my apartment within a 3 year period? I hear people talk of a 3 year period for applicability of CGT benefits…again is it 3 yrs from possession date or purchase/ agreement date? I purchased in June 2008 and took possession in June 2010. I plan to sell now…

    1. Manish

      It would be date of purchsing mentioned in the sale agreement (registration)

      Manish

  187. A K Mishra says:

    can the existing housing loan availed in April 2010 be adjusted by my capital gain S/B account maintained in the same Bank Branch?
    Limit Sanctioned by Bank Rs. 1600000.00
    Date of sanction April 2010
    Amount availed till date Rs.650000.00
    Construction is continue
    Possession expected in Dec 2013

    1. AK mishra

      What do you mean by adjusted ?

      Manish

  188. ramesh iyas says:

    gr8 work manish.

  189. susanta says:

    I have purchased a residential plot in the month of Jan 1996 with a cost of Rs. 45,000/-. I construct a boundary wall with a cost of Rs. 25,000 in June 1996 (but no expenditure proof is available at this time). I intend to sale this plot for an amount of Rs. 16,75,000/- in Nov 2011. My questions are :-
    (a) How much I have pay tax for capital gain
    (b) How to save tax against capital gain
    (c) Where to invest the money so that i can save tax
    (d) How to calculate the tax. can you e-mail me

    1. Susanta

      a) Depends on the cost price of the land and it would be the amount equal to registry amount ,also you need to index the cost .

      b) Yes , if you invest the money in another real estate within 2 yrs

      c) Same as b

      d) Search the net or meet a CA

      Manish

  190. Paras says:

    I have a flat which I am about to sell and expect to get Capital gains on it. It would be a long term Capital Gain as the property has been held for more than 36 months by me. My question is, if I can get a tax exemption on the capital gain in the following case:
    I booked another property (under construction) 30 months back and I have not yet received its possesion nor its registry is yet done. Some amount is due to be paid to the builder at the time of possesion and the registry amount. If I utilize the above money earned in Capital gain, then am I eligible to get the tax exemption even if the property was booked 30 months back?

    1. Paras

      you yourself replied to Sirish the same kind of thing . what mattes is the LEGAL document date , no matter when you booked it , if you register the property on date X , then date X becomes you buy date .. so see how much tenure is between buying date and selling date. only then you can find out if its short term or long term capital gains

      Manish

  191. Sirish says:

    Hello Manish,

    Thanks for excellent information.

    I have a simple remaining question. How do I know the “year” I purchased a society flat purchased in installments. First installment of Rs 1.25 lakh was paid in 2003 and after yearly installments, final one was paid to society in 2008 when I got possession. Total cost paid over the years was Rs 14 Lakhs. Which year do I use for cost basis for indexation and to calculate whether I pay Short Term or Long Term capital gains tax. If I sold the flat with in one year of taking possession, do I pay Short Term capital gains tax even though technically I made payments (and owned shares in society) since 2003.

    Thanks. Sirish

    1. Sirish

      Its not the actual value you paid ,its the amount with which you made it registered legally .. so look at the amount on which you paid stamp duty

      Manish

    2. Paras says:

      Sirish, I think it would be the year in which the flat got registered/got the possesion irrespective of the year of booking the flat. So 2008 should be used for cost basis indexation. So you if you sell the flat in 2009, it should be Short term CG. Still visit some CA to get the clarification.

      Thanks!
      Paras

  192. vilas says:

    Sir,
    I have two questions regarding capital gains tax on sale of house property :
    (1) Purchase price Rs. 3,81,000/- in 1991 – sale price Rs. 500000/- in fy 2010-11. how to calculate cg tax?
    (2)Purchase price/cost Rs. 40000/- approx. in 1961. sale price Rs.2700000/- in fy 2011-12. how to calculate cg tax?
    Thanks in advance.

    1. Vilas

      1. in this case , its exactly same as explained in the article

      2. In this case you need to take the house value as per year 1981 , you will require a “valuaer” in this case .

      Manish

  193. Pooja Kadakia says:

    Hi,

    I have a question regarding capital gains from arts and antiques, are the tax slab the same for LTCG and STCG in this case as well.

    What are the deductions available for investment in arts and antiques.

    1. Pooja

      the taxation will be in same manner as in debt funds .. before 3 yrs it will be added to income and after that indexation will apply

  194. samir says:

    Hi,
    For New Flat
    First Payment Date : 17/04/2010 : Rs. 1000000
    Last Down Pymant Date : 30/11/2010 : Rs. 0010000
    Last Loan Payment Date : 08/02/2011 : Rs. 1100000
    —————————————————–
    Total : Rs. 2200000

    Total Downpayment : Rs. 1100000
    Total Home Loan : Rs. 1100000

    Stamp Duty / Registration : 21/04/2010 : Rs. 130000
    Home Loan Mortage : 29/08/2010 : Rs. 020000

    Sold 2 Properties :
    Flat 1 : 12/12/2010 : Rs. 1150000 (Capital Gain Tax Rs. 100000 Bonds Purchased)
    Flat 2 : 20/08/2011 : Rs. 2100000 (Capital Gain Tax Rs. 500000 After Home Loan Closure Rs. 500000)
    —————————————————–
    Total : Rs. 3250000

    May I Make Downpayment Rs. 500000 so that no need to pay Long Term Gain Tax OR No Need To Buy Bonds ?

  195. harman singh says:

    Hello Manish,

    I have few questions that i did like to ask and it will be very helpful if you could answer the same.
    1) i have recently sold off agricultural land that i had inherited through many generations. Due to fast growing townships the land is just outside the muncipal limits (within 8 km outside mucipal limits). I am able to calculate the capital gain but my question is what type of property can i buy and since on a part of a land there was a marriage palace can i count in the money that i had invested to develop the palace to be deducted from capital gain.
    2) Also the money apart from capital gains will be counted as income for that year?

    Thanks a lot as your article was immmensely helpful !!! Cheers mate and keep up the good work

    1. Harman

      1. You dont have to pay the tax if its marked as “Agricultural Land” . also when you sell it , you can save tax on the capital gains only if you invest in another “agri land” .. \

      2. Any thing other than capital gains , will be assumed to be your income .

      Manish

  196. vasudev says:

    Hi

    I have purchased a property in 2001 and sold in 2009 and there is no capital gain on the property. while filing the incometax return this was not shown as there is no capital gain. now my question is that is it mandatory that this transaction is to be shown in filing of incometax return.

    vasudev

  197. thomas paul says:

    Hi Manish

    I read you article on Capital Gain tax ( https://www.jagoinvestor.com/2009/05/how-to-calculate-capital-gains-and-what_7801.html ) , it was very interesting. However i am failing to understand few thing

    we purchased a house in 1993 for Rs 5 55 000 and we sold it in 2011 for Rs 13 00 000, can you tell me how how much Capital gains tax is incurred on this , the reason i am asking you is cause we want to invest this amount in in some secured debentures which gives 11% or FD which gives 10 %. instead of capital gain bond ( which give only 6 % ) .

    1. Thomas

      I have a good news for you … You dont have to pay any tax , and on top of it , you can actually show some loss ! . Let me show you why

      the CPI for 2011 is 785 and CPI for 1993 is 244 . Which means your Indexed Cost of House = 550000 * 785/244 , which is 17.5 lacs approx .. So your COST is bigger than SELL Price .. and hence you made a LOSS of 4.5 lacs . This is long term capital loss , you dont have to pay any tax on the money you got by selling the house . Infact if you have some other long term capital gains , you can adjust 4.5 lacs loss from it .

      Manish

      1. Sanjeev Kumar says:

        Hello Manish,

        My mother is a senior citizen. She recently sold 8 acres of inherited agricultural land. The market value of the land in 1981 was approximately 75,000 Rs per acre. Land was sold in July 2011 at a price of 7,50,000 per acre.

        1) Is there any long term capital gain she has to pay?
        2) She does not have any other income. If there is no capital gain to pay on the land, does she still has to notify or fill the income tax forms?

        Thanks.
        Sanjeev

        1. Sanjeev

          1. Yes there will be long term capital gains tax just like any other real estate property . You can calculate it just like the article mentions
          2. Income tax is given on the income for the year , if she does not have regular income, it does not matter , she got income in this year .. so she pays tax .

          But there is one good point ,she can save tax by investing the capital gains in another “Agricultural land”

          Manish

          1. Sanjeev Kumar says:

            Hello Manish,

            Thanks for your quick response.

            After calculation, I found out that my mother made a long term capital loss on sale of her agriculture land. Also, she does not have any other income as well. My follow-up question is: does she still has to notify the income tax office about the property sale OR need to fill any forms?

            Thanks again for your help.
            Sanjeev

            1. Sanjeev

              No she does not , but she should . because only then you will be able to carry forward the capital loss and adjust it with profits later upto 8 yrs .

              Manish

  198. Rama says:

    Hi Manish,

    I have a flat in Bangalore for which interior is done by me in 2008. The property was book in Sep’2005 and registered in Mar’08. I started living in it from Jun’08. I have paid builder X amount for the basic flat, Y amount towards depost of BESCOM (electricity) and BWSSB (water and sweage), Z amount towards alteration and XX towards interiors.

    How do I calculate my Long term capital gains?
    Can I claim deduction towards my Y, Z and XX amount as an improvements?

    1. Rama

      It would be your registeration amount which will be taken as Buy price

      Manish

      1. Rama says:

        The registration amount is X + Z only.

        How do i manage the interior amount? Say I spent 10L for the interior whose present value is 6L. Can I show 4L as a loss ?

        1. Rama

          I think you need to involve a CA or a valuaer for this .

          Manish

        2. Rama

          You cant show interiors like that .. Better talk to CA on this , if it involves lacs of rupees , better spend some thousands on this and save more

          manish

  199. S Karuna says:

    I undersand that the procedure for investment in residential property to save capital gains tax gains after selling a property is not available in case one is already having two residences already.Pls clarify on this.

    Also pls inform whether investment in Studio apartments qualifies for savings on capital gains tax.

    Thanks

    1. S Karuna

      I dont think so that the rule you mentioned is correct . Where did you read that if a person has 2 properties than he cant save tax by reinvesing profits from real estate ?

  200. akhilesh says:

    hi, manish
    my name is akhilesh..main govt. employ hun..and my salary is 15000 permonth.
    my question is…maine 500000 property me invest kiya tha before 8 to 9 month..and that time the property value riched 1000000..so m responsible for capital gain tax..to main ye janana chahta hun ki main apna capital gain tax kaise save kr skta hun..aur jb main 10% tax slab me aajaunga to kya tb b main propety sell krunga to mughe income tax ke alawa cgpt tax bhi dena hoga..???

    1. Akhilesh

      Tax on property is given only at the time of selling , there is only single tax given on anything , not double , LTCG is called only when the profits/loss are after 3 yrs

      Manish

      1. akhilesh says:

        thanks manish..

        1. akhilesh says:

          hi, manish…i want to know..ki ek govt. employ agr investment krke big amount bana leta hai aur sare tax bhi time to time pay krta hai…to future me use koi problem to nahi hoga…??

          1. Akshilesh

            Nahi , what problem ? Koi problem kyun hoga ?

  201. Pavan Mohan G says:

    Hi Manish,

    We have sold an Ancestoral property ( Site) in Bangalore . To avoid Capital Gain tax we are planning to buy another property . But the doubt is , which type of property should i look for. My options are :
    1. To buy a built house
    2. Agricultural Lands
    3. One property where in there is a big shop in ground floor and House in first floor

    Can i use any of these options to avoid capital gain tax as i am not interested in buying any bonds like REC as the interest is only 6%.
    I am more interested in option 3 as mentioned above. but i dont know wheather its considered as commercial or residential property.

    Need ur suggestions .
    Thanks
    Pavan

    1. Pavan

      I think you can make the house on the land and it will be considered as residential only . leave the ground floor like that for some time , later use it commercially , a good idea would come from a CA

      Manish

  202. Sharad Kapadia says:

    An organisation owned property (bought before 1981, was sold in April 2011. What should be the calculated Capital Gain for sale of real estate? It is not a Trust but IT returns were filed as deemed trust and exemption due to the trusts is allowed by IT officer.
    While the price of this property has not increased in comparable increase in the price of gold, i.e. real value of Rupee has depreciated more than the indexation, are we logically entitled to claim on the grounds of real value rather than the IT Act provision?
    We are also going to purchase land from the sale proceeds of old property.
    Thanks.

    1. Sharad

      the workings will be same as the law for real estate .. no exception

  203. Pavan Mohan G says:

    Hi,
    I have some doubts about Tax on capital gains on Shares and securiteis.
    Q1. How i can know whether it is STCG or LTCG in case of shares and securities and other properties (Land, Flat, etc)?
    Q2. If i sell shares after 1 year from purchase, will there be any tax on capital gains? if so, How much? and same if i sell before one year.?
    Q3. What is meant by Tax befor indexation and after indexation? Can we opt for the option based on which tax will be lower?

    1. Pavan

      1. In shares if you sell it before 1 yrs then its short term , else its long term

      2. There wont be any tax

      3. https://www.jagoinvestor.com/2009/05/how-to-calculate-capital-gains-and-what_7801.html

      Manish

  204. Sankar Srinivasan says:

    Hi Manish,

    I had sold a residential property this month and following are details of my calculation and based on that I have few clarification, requesting to provide you valuable answers that help me decide for further planning

    Purchase Cost in 2002 Rs. 2200000
    Sale Price in July-2011 Rs. 8200000

    Cost of Inflation 2002 447
    Cost of Inflation 2011 785
    Indexation 1.756152125

    Indexed Purchase 38,63,534.67

    LTCG – Indexed 43,36,465.324

    20% of LTCG – Indexed Rs. 8,67,293

    Based on the above information, request provide some clarifications as below

    1) Since I sold the property in July-2011, I have time till March-2012 to decide to buy another residential property or to pay the tax of Rs. 8,67,293 in month of March-2012 and till March-2012 I could deposit entire money (Rs. 82, 00000) money I gained in the sale of apartment either in FD or in any account of my choice ? Is my understanding correct ?

    2) If I decide to purchase residential property before March-2012, the LTCG amount of Rs. 43,36,465 should be deposited in captial gain tax account and same amount need to be utilised for completion of construction before July-2014 ?

    2.1) Assuming I have paid the builder Rs. 40,00,000 till July-2014 and If builder does to complete the construction by July-2014 then I need to pay tax of Rs. 8,67,293 as tax before March-2015, is my understanding correct ?

    Please request you to provide your valuable answers, so I could plan accordingly.

    Thanks in advance.

    Regards,
    Sankar Srinivasan

    1. Sankar

      yes, your understanding is correct .

      Regarding the last point , I suggest you take advice from a CA also , as this involves 40 lacs of rupees, i dont think you should shy away from hiring a CA , you will save much more than what you invest in CA consultancy 🙂

      Manish

  205. Aishwarya says:

    Hi,

    We are selling off our family business (private limited company) by way of selling the equity shares (purchased in 2007) held by our family members. Will the profit from the sale attract long term capital gains tax? The clause regarding the exemption of this tax from sale of equity shares is confusing. Hence the question.

    1. Aishwarya

      Yes , as those shares are not listed on exachnage, you need to pay long term capital gians ,you will get the benefit of indexation though 🙂

      Manish

  206. Dr. Maneesh Aggarwal says:

    Hi,
    1. Tell me CII for 2011-12.
    2. Can LTCG from sale of a Residential plot be used to buy a commercial plot, in order to save tax on LTCG.
    3. If the residential plot was bought using a bank loan. Than does the interest paid to the bank add up to the cost price, in order to reduce the LTCG.

    Regards

    1. 1. I am afraid its still not come
      2. NO , its only allowed for residential plot
      3. No

      Manish

  207. Karthikeyan says:

    Dear Manish,

    Please find the detail of my transaction (sold a flat)
    Purchase Price 1500000
    Year of Purchase 1993
    Sale Price 5500000
    Year of Sale 2011
    No of Years 18
    Purchase CII 244
    Sale CII 711
    Indexed Purchase Price 4370902
    Capital Gain 1129098
    Tax with Indexation 225820
    Tax without Indexation 400000

    If I reinvest 11 lakh, can I avoid paying tax? Do I have to buy a house/flat or can I buy an agricultural land.

    Thanks for your time.

  208. premal says:

    Dear Manish,

    If I have made some long term capital gains due to sale of shares of an unlisted company. Correct me if I am wrong, the indexation will be applicable for the tax treatment…… My question: Is there any way to save the tax through sec 54ec or otherwise ?

    Rgds,
    Premal

    1. Premal

      Yes , INdexation would be allowed and you can definately save it by investing it in REC or NHAI bond

      Manish

  209. please tell me my area is near to municipal area 8 km but population is 3000 only capital gain is applicable or not

    1. Jai

      Capital gians will be applicable

  210. MANJUNATH says:

    We have entered to JV of our property with 63% : 37% ratio with builders. How does the capital gains implication If we get 37% ratio and will invest full amount in getting a site and build residential house for own purpose since presently we dont have any residential house for our own. Do we are eligible for availing exemption under sec 54F. Please clarify

    1. Manjunath

      Thats a little complicated now , I would recommend you to take proper service of some CA

      Manish

  211. javed says:

    hi manish,

    Its really great u’ve been solving so many querries so patiently for so long..m sorry to add one more one to you…..my father purchased a land 22ys ago(1989) for rs45000 (but on sale agreement the cost price mentioned is 8000) we sold the land in apr’11 for 40lacs and booked a flat costing us 70 lacs in a developing society (possesion of flat in 2014). We intend to give the developers of the flat 40 lacs within 10 months…..also the flat is booked on me and my father’s name whereas the land we sold was only on my fathers’ name…please tell us if we need to pay any tax on the amount we recieved from selling our land…also we have immediately invested the amount in property…..

    1. Javed

      No , as your profits will be less than 40 lacs and you are anyways putting 40 lacs in new flat , you dont have to pay the tax, but now the issue is if you and your father are contributing amounts ,then your father might be eligible only to claim upto 35 lacs of capital gain , which i think should be ok .

      Manish

      1. javed says:

        thanks manish…just one add on…..my father has one apartment (where we are residing right now) in his name (jointly with my mother), will we have any problem with the second house (concerning the capital gain tax) which we have booked jointly on me and my fathers name (the one mentioned in my above post)..?

        1. Javed

          the only issue here is that your father will have to pay wealth tax on the second property

          Manish

  212. Daryanand says:

    Dear Manish,

    I bought my property in 2003 (on loan of 19 lacs )for 27 lacs and need to sell it in Aug 2011 for abt 1 Cr. I have 15 lacs outstanding on my loan which I will have to pay up now that I am selling. Can I subtract the same from my sale price for LTCG calculation. Also if I have made part payments based on progress while buying. SHould I use the possession date (the last payment) or the date of the agreeement (1st payment for advance) as the year of purchase

    1. Daryanand

      You need to consider the value of house which was in registeration , so was it 27 lacs, If yes then the cost price is 27 lacs , now index that cost and it