What are my capital gains?

Question

Property was purchased in Feb. 1992 for Rs. 62,175. Improvement of Rs. 30,000. Sold for Rs. 9,00,000 in May 2008. What are my Capital Gains?

Answer 1

You have long term capital gain.

Read computation of long term capital gain at

http://mytaxes.in/index.php?topic=30.0

Answer 2

Capital gains are the total profit you have made with a certain amount of money/property(capital) less your expenses.

Here in this case your capital gain is calculated as follows:

Capital Gain = 9,00,000 - 62,175 - 62,175 = 8,07,825.

You will get some relaxation in capital gain tax for the gain at it was sold long ago.

Thank you for the time reading this.

Answer 3

your capital gain will be calculated as under

capital gain index for py 2008-09=suppose is 600(yet to be notified)

capital gain index for py 1991-92=199

sale price=900000

less:indexed cost of property=(30000+62175)*600/199=277914

capital gain=900000-277914=622086

you can save this tax if the property you have sold is a residential property ,and buy a new residential property for at least 622086 and save full tax

check details from here

http://simpletaxindia.blogspot.com/2008/...

Answer 4

This is long term gains.

From http://incometax.indlaw.com/display.aspx... , you need to get the inflation index on purchase - in this case it is 199. In May 2008 the index is not yet published since the FY is still running. Taking the index for 2007-08 (Upto April 08) which is 551, the cost inflation index is 551/199 = 2.7688.

So your purchase price is 92175*2.7688 = 255218.

Thus your capital gains is 6,44,781.

Answer 5

Rs. 14215