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.

AI Summary

Understanding Tax Refunds on Long-Term Capital Gains: TDS, Indexing, and Deductible Expenses Explained A participant inquired about calculating tax on long-term capital gains from selling land purchased in 2010 for 40 lakh and sold in 2014 for 60 lakh. The calculation showed a tax liability of 47,820 after indexing. The participant questioned whether they would receive a refund after the purchaser deducted 60,000 as TDS. An expert clarified that the tax, including a 3% cess, amounts to 49,255, resulting in a refund of 10,745. Another query was about deductible expenses, to which it was advised that expenses like brokerage and stamp duty are deductible if documented.