capital gain tax liability when there is no other income?

i have earned long term capital gain.I want to pay tax on gain earned by selling a house property. The net gain is 16,35000/-Neither I want to invest in tax saving bonds nor i want to purchase any property. I want to pay tax and i have no other income during the year. What is the amount of tax laibility?

3 Replies to “capital gain tax liability when there is no other income?”

  1. If you are a Male, then you deduct Rs.1,10,000 from that Long Term capital gains and pay tax for the remaining income @20% tax.

    Please note that the long term capi. gains from the sale of property is subject to indexation. By indexation, your gains will still reduce depending on how many years back you have purchased it.

    How to Calculate L.T.C.Gains (Indexed)

    50,00,000 is the selling amount of your house (2007-2008)
    33,65,000 is your purchase cost (FY: 2000-2001)
    16,35,000 is your LTCGain directly. W/o indexation.

    Now to calculate and find out indexed cost for Rs.33,65,000
    Index for FY:2007-08= 551
    Index for FY:2000-01= 406

    3365000 x 551 / 406 = 45,66,786 is your indexed cost

    50,00,000-45,66,786= 4,33,214 is the indexed gain.

    Note= Your direct gain Rs.16,35,000 became only Rs.4,33,214. Now you have to pay tax on 433214 @20% and not on Rs.16,35,000. If you do not have any other income again you can deduct Rs.1,10,000 from 4,33,214 and pay tax on 3,23,214 only @20%.

    You calculate as per sample calculation given above replacing the purchase cost, purchase F.Y and index for purchase FY.

    Findout your inflation index for your purchase FY from the below list.

    Finan.Year- Index
    2007-2008 551
    2006-2007 519
    2005-2006 497
    2004-2005 480
    2003-2004 463
    2002-2003 447
    2001-2002 426
    2000-2001 406
    1999-2000 389
    1998-1999 351
    1997-1998 331
    1996-1997 305
    1995-1996 281
    1994-1995 259
    1993-1994 244
    1992-1993 223
    1991-1992 199
    1990-1991 182
    1989-1990 172
    1988-1989 161
    1987-1988 150
    1986-1987 140
    1985-1986 133
    1984-1985 125
    1983-1984 116
    1982-1983 109
    1981-1982 100

    More about capital gains:

  2. to get a correct reply, u need to give full information.
    i.e. the date or purchase/acquisition of the property
    the date of sale
    cost price
    and sale price. only then the exact tax cen be calulated tp the nearest rupee.

  3. Normally No capital gain tax is payable on long term capital gain.
    Indexation will have to be referred to ascertain the tax quantum payable if the purchase of house property now sold is of a recent date.

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