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Property Purchased in Feb 2005 1000000 Property Sold in march 2020 4000000 What is Capital G ain it is a Long Term Capital Gain As Holding Period is More than 24 Months So Cost of Property increased by Indexation Formula Indexation Rate in 2004 05 113 Indexation Rate in 2019 20 289 Indexed Cost of Acquisition 1000000*289/113 = 2557522 t LTCG on Sale of Property Calculation of Indexation Long Term C apital G ain Format Full Value of Consideration 4000000 Less Cost of Acquisition 2554522 Cost of Improvement 0 Short Term Capital Gain 1445478 Expenses of Transfer 0 Balance Capital Gain is Taxed at 20% On Income Exceeding 250000 Tax = (1445478 − 250000 )*20% = 239096 Tax Net Tax 239096 Cess 4% 9564 Net Tax + Cess 248660

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.