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|
|
Example Five |
|
Mr X owns a residential house
at Delhi since 1968 (income is taxable under Section 22). The house
is sold by him
for Rs 38,90,000 on May 10, 2006 (cost of acquisition: Rs 4,50,000
fair market value on April 1, 1981: Rs 5,10,000). To claim exemption
u/s 54, he purchases a residential house property at Ajmer on March
10, 2007 for Rs 1,51,000. On July 16, 2007 he deposits Rs 6,00,000
in a bank account specified for the purpose of section 54.
By withdrawing from the deposit account he purchases a house property
at Kota on May 5, 2008 for Rs 3,10,000. Construction of another
house at Jaipur is completed by May 9, 2009 entire cost of construction of
Rs 1,80,000 is financed by withdrawing from deposit account. The
unutilised amount in the deposit account is withdrawn by him after
May 10, 2009. Determine the amount of Capital Gains chargeable to
Tax. |
|
Home
finance |
| Your
guide to taxes |
| Example
one |
| Example
two |
| Example
three |
| Example
four |
| Example
five |
| Example
six |
| Computation of Tax |
| Assessment Year 2007-08 |
Rs |
| Sales proceeds |
38,90,000 |
| Less: Indexed cost of acquisition (Rs 5,10,000 X 519÷100)
|
26,46,900 |
| |
|
| Balance |
12,43,100 |
| Less: Exemption u/s 54 (i.e. cost of house purchase in Ajmer: |
7,51,000 |
| Rs 1,51,000 + amount deposited in deposit account: Rs 6,00,000)
|
| |
| Long-term Capital Gain |
4,92,100 |
| |
|
Assessment year 2010-11 [i.e. relevant to the previous year
in which 3-year time
limit from the date of sale of house (May 10, 2006) expires] |
|
| |
Rs |
| Amount of deposit in the bank account on July 16, 2007 |
6,00,000 |
| Less: Cost of house purchased on May 5, 2008 |
3,10,000 |
| Cost of constructing
another house |
1,80,000 |
| |
|
| Long-term Capital Gain |
1,10,000 |
|
|
|
