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6,26,316
You will have to pay tax @ 20% on this amount.
For the chart of cost inflation index from 1981-82 onwards is CLICK HERE
How to Know Date of Birth on PAN Card ?
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Suppose you sell a plot of land for Rs 10lacs in Fy 2006-07 and cost of which was 1 Lac. The plot of land was purchased in 1985-86. Therefore, in your return of income you will have to show the capital gains tax .What is the capital gains? Is it Rs 9(10lacs-1lacs).No, the I T Act provides a method of computing the cost by inflating applying cost inflation index notified by the government every year.So the calculation of long term capital gains is as follows:
- Cost = Rs 1,00,000
- Purchase year =1985-86
- Cost Inflation Index for 1985-86 is 133
- Sale year = 2006-07
- Cost Inflation Index for 2006-07 is Rs 497
- Inflated cost = 1,00,000 x 497 /133= 3,73,684
- So long term Capital gains is :
- Sale value 10,00,000
- less
- Cost of land 3,73,684
6,26,316
You will have to pay tax @ 20% on this amount.
For the chart of cost inflation index from 1981-82 onwards is CLICK HERE
How to Know Date of Birth on PAN Card ?
Don't Download any thing before free Registration on the TOP of this site and check your inbox for clicking on activation link of feed burner.
