capital gain tax

[MITHUN SAHA]

sir.

I am going to sell land and building in current year 2014-15 for ₹ 25,00000/- which i am holding for more than three years...The Indexed cost of acquisition is ₹ 1750000/-(approx). My question is

1) Can i take Indexed cost of improvement as deduction from sale consideration ₹ 55000 /- expensed in 2011-2012 and ₹ 85000/- in 2012-13 as i do not have any documents regarding such expenditures .

2)what is the rate of tax of LTCG for F/Y 2014-15.

3) how can i get relief or exemption from long term capital gain as per above point(2) . Please give me detail process.

[CAGOPALJI AGRAWAL]

One may claim the the cost of improvement but the onus is on the assessee to evidence the same by way of documentary evidences/explanations.

The rate on LTCG is 20%, of course with Educations cess.

You may claim the exemption u/s 54 by purchasing a new residential house within one year before the transfer or two year after the date of transfer or construct within three years from the date of transfer of the asset. You may also invest on capital gain bonds u/s 54EC.

Please note that of you do not invest before the due date of return of income, you are required to deposit the gain amount in capital gain account scheme with the designated banks.

AI Summary

Selling Land & Building: LTCG Tax Rate 20% Plus Cess; Exemptions via Sections 54 & 54EC for FY 2014-15. An individual plans to sell land and a building for 25,00,000, held for over three years, with an indexed acquisition cost of 17,50,000. They inquire about deducting improvement costs of 55,000 and 85,000, despite lacking documentation, and seek the long-term capital gains (LTCG) tax rate and exemption methods for the fiscal year 2014-15. A Chartered Accountant advises that improvement costs can be claimed if documented, the LTCG tax rate is 20% plus education cess, and exemptions are available under sections 54 and 54EC by purchasing a new house or investing in capital gain bonds.