TAX ON LONG TERM CAPITAL GAIN, Income Tax

[Rajeev Khulbe]

GOOD EVENING TO ALL MY GREAT EXPERTS,

SIR PLEASE CLEAR MY DOUBT REGARDING TAX ON LONG TERM CAPITAL GAIN FOR SALE A LAND. SIR SOLD A LAND AMOUNT 60 LAKH IN YEAR 2014. I WAS PURCHASE THESE LAND ON YEAR 2010. OF 40 LAKH. MY CALCULATION ON CAPITAL GAIN AS BELOW.

SALE AMOUNT = 6000000

YEAR = 2014

COST INDEX NO. = 1024

PURCHASE YEAR = 2010

AMOUNT = 4000000

COST INDEX NO. = 711

THEN

INDEXED COST = 4000000 X 1024 = 5760900

711

CAPITAL GAIN = INDEXED PURCHASE PRICE - SALE PRICE 5760900 - 6000000 = 239100

239100 X20 /100 = 47820 TAX

SIR MY QUERY IS THAT AS PER ABOVE CALCULATION I WILL PAID TAX ON CAPITAL GAIN IS 47820. BUT SIR MY QUERY IS THAT 60 THOUSAND TDS DEDUCT BY PURCHASER ( 6000000*1/100). SIR SO I WAILL PAID TAX AFTER ADJUST TDS DEDUCT 60000. MEANS

TAX = 47820

TDS = 60000. MEANS I WILL GET REFUND 12180 ( 60000-47820). SIR PLEASE REPLY MY QUESTION.

Posts / Replies

[Ramaswamy S]

refund of ₹ 10745/- to be claimed in the returns.

47820/- +Cess of 3% (1435)= ₹ 49255/- is the tax.

Regards

S.Ramaswamy

9686088864

[Rajeev Khulbe]

Sir

Can you tell me that which TYPE expenses we can less In capital gain like stamp duty etc ????

[Ramaswamy S]

The expenses incurred towards selling of the property like the brokerage charges, provided bills are available can be deducted from. Stamp duty paid at the time of purchase is part of the cost of the property and hence is to be considered to arrive at the cost of the property.