Example 1
Suppose an asset purchased for 30000 ,next month sold for 40000
What is
- Full Value of Consideration
- Cost of Acquisition
- Short Term Capital Gain
View answer
In this case,
Full Value of Consideration=40000
Cost of Acquisition=30000
Short Term Capital Gain=100000
Example 2
Suppose an asset purchased for 30000 ,2000 spent on repairing,next month sold for 40000
View answer
In this case,
Full Value of Consideration=40000
Cost of Acquisition=30000
Cost of Improvement=2000
Short Term Capital Gain=40000-30000-2000=8000
Example 3
Suppose an asset purchased for 30000 ,2000 spent on repairing,next month sold for 40000
Also Rs 1000 Commission paid to broker for Sale
View answer
In this case,
Full Value of Consideration=40000
Cost of Acquisition=30000
Cost of Improvement=2000
Expenses of Transfer=1000
Short Term Capital Gain=40000-30000-2000-1000=7000
COMPUTATION FORMAT
| FORMAT | AMT |
| Full Value of Consideration | XX |
| Less | |
| Expenses of Transfer | XX |
| COA(Cost of Acquisition) | XX |
| COI (Cost of Improvement) | XX |
| Capital Gains | XX |
| Less | |
| Exemptions u/s 54 etc | XX |
| Net Income from Capital Gains | XX |
Here
Full Value of Consideration (FVC)
This means the Selling Price i.e. the amount received on Sale of the Asset
Expenses of Transfer
It means the expenses incurred on Sale etc like Stamp Duty, Brokerage/Commission paid to Agent etc
Cost of Acquisition (COA)
It means the purchase price of assets.
Cost of Improvement (COI)
It means cost of improving the asset i.e. any cost of modification or enhancement of value of asset.
QUESTIONS
Q1
Suppose jwellery purchased for Rs 100000 on 10 April 2015.It was sold for Rs 130000 on 20 March 2016
Compute Capital Gain
View answer
FVC=130000
COA=100000
| PARTICULARS | AMT |
| Full Value of Consideration | 130000 |
| Less | |
| Expenses of Transfer | |
| COA | 100000 |
| COI | NIL |
| Short Term Capital Gain | 30000 |
Q2
Suppose Mr A purchased Property for Rs 15 lacs on 10 April 2015. Mr A spent 8 lacs on construction of the house property, which was sold for Rs 40 lacs on 20 March 2016.
Compute Capital Gain
View answer
| PARTICULARS | AMT |
| Full Value of Consideration | 4000000 |
| Less | |
| Expenses of Transfer | |
| COA | 1500000 |
| COI | 800000 |
| Short Term Capital Gain | 1700000 |
Q3
Suppose In Q2 Mr A gave 1% commission to Broker on Sale of Property
View answer
Expenses of Transfer=Commission=1%*4000000=40000
| PARTICULARS | AMT |
| Full Value of Consideration | 4000000 |
| Less | |
| Expenses of Transfer | 40000 |
| COA | 1500000 |
| COI | 800000 |
| Short Term Capital Gain | 1660000 |