What is the capital gains tax to be paid for a residential land purchased in 2005?



I have a vacant residential plot in a vacant gated community located in Bangalore. What is the capital gains tax I should pay and what should I do incase I want to avoid this tax

What is the capital gains tax to be paid for a residential land purchased in 2005?
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One Reply to “What is the capital gains tax to be paid for a residential land purchased in 2005?”

  1. Computation of Long-term Capital Gain:

    1. Take the full value of consideration (full sale price without any deductions),

    2. Deduct
    •Expenses incurred for the transfer,
    •Indexed cost of acquisition, and
    •Indexed cost of improvement.

    3. Deduct exemptions under sections 54 & 54EC, if any.

    Capital gains tax @ 20% + cess.

    You can claim exemption u/s 54 by investing the CGs in a residential house
    or by investing in specified bonds u/s 54EC.

    HMT





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