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

Long-term capital gains tax: exemptions available through residential reinvestment or capital gain bonds; evidence required for improvement claims.
A seller may claim indexed cost of improvement against long term capital gain but must substantiate such expenditure with documentary evidence; the long term capital gains tax is payable at the statutory rate with education cess. Exemptions are available by reinvesting in residential property within prescribed purchase or construction periods or by investing in specified capital gain bonds. Failure to invest before the return due date requires depositing the gain into a designated capital gain account scheme to maintain exemption eligibility.