Advice needed on the amount to be invested in the Capital gain account

POSTED BY Ravikiran Bhilare ON June 28, 2012 11:27 am COMMENTS (2)

I had a query regarding LTCG(Long term capital gain)

I had purchased a flat in Mumbai for Rs. 277000/- in year 1992 got the possesion from the builder in 1997.
I sold the same flat for Rs. 2500000/- on 22/3/2012. I am going to invest the amount in the new Residential house but it will still take 3-4 months to final the new house.

It would be very helpful is you could please let me know how much amount i should invest in Capital gain account and also by what date?
It would be great if you could share the calculations.

2 replies on this article “Advice needed on the amount to be invested in the Capital gain account”

  1. Dear Ravi, Here is the calculation for LTCG.

    Year of purchase = 1992-93
    CII of purchase year = 223
    Purchase price = 277000
    Sell year = 2001-2012
    CII of sell year = 785
    Indexed purchase price = 277000*785/223 = 975000
    Sell price = 2500000
    Indexed Long Term Capital Gains = 2500000 – 975000 = 1525000

    So you need to invest 1525000 Rs. in Cap. Gain saving account. Please do it before filing your ITR.

    Thanks

    Ashal

    1. Ravikiran Bhilare says:

      Thanks Ashal, your reply helped a me a lot.

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