TAX ON LONG TERM CAPITAL GAIN

[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.

[Nash Industries I Pvt Ltd]

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 ????

[Nash Industries I Pvt Ltd]

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.

AI Summary

Long term capital gains tax: computed with indexation; TDS at transfer may be credited and can yield a refund.
Long-term capital gain on sale of land is computed by indexing the cost of acquisition to the year of sale using the cost inflation index; the resulting indexed cost reduces the taxable gain, which is taxed under the capital-gains regime with applicable cess. Tax deducted at source by the purchaser may be claimed as credit in the seller's return and offset against the computed tax liability, potentially producing a refund if the TDS exceeds tax due. Selling expenses such as brokerage are deductible from gains, while stamp duty at purchase is included in the cost of acquisition.