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Calculator for Capital Gain from Immovable PropertyEnter data in applicable bordered cells

A. PurchaseA1 Financial Year of Purchase / Acquisition of the Immovable Property 1997-98A2 Cost Inflation Index for the Year of Acquisition 331A3 Purchase Price of the Immovable Property 1000000A4 Add: Expenses relating to acquisition (e.g. brokerage, registration charges,

legal expenses etc.)100000

A5 Total Cost of Acquisition of the Immovable Property 1100000A6 Indexed Cost of Acquisition of the Immovable Property [ A5 x C2 / A2 ] 1831118B. ImprovementB1 Financial Year of carrying out improvement(s) 2000-01B2 Cost Inflation Index for the Year of Improvement 406B3 Cost of improvements carried out in the property 1200000B4 Indexed Cost of Improvement [ B3 x C2 / B2 ] 1628571C. SaleC1 Financial Year of Sale / Transfer of Property 2007-08C2 Cost Inflation Index for the Year of Sale / Transfer 551C3 Full value of consideration received for Sale / Transfer 3500000C4 Less: Expenses incurred on transfer of the property (e.g. brokerage paid,

registration charges and legal expenses)50000

C5 Net Value of Consideration 3450000Reset Submit

Long Term Capital Gain [ C5 - (A6 + B4) ] -9689

ExemptionsSection 54:In case the the immovable property sold / transferred is a residential house, and if out of thecapital gains, a new residential house is constructed within 3 years, or purchased 1 year beforeor 2 years after the date of transfer, then exemption on Long Term Capital Gain is available onthe amount of investment in the new asset to the extent of the capital gains. It may be noted thatthe amount of capital gains not appropriated towards purchase or construction of a new housewithin 3 years may be deposited in the Capital Gains Account Scheme of a public sector bankbefore the due date of filing of Income Tax Return. This amount should subsequently be used forpurchase or construction of house.Section 54F:When the asset transferred is a long term capital asset other than a residential house, and if outof the consideration, investment in purchase or construction of a residential house is made withinthe specified time as in sec. 54, then exemption from the capital gains will be available as:1. If cost of new asset is greater than the net consideration received, the entire capital gain is

exempt.

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2. Otherwise, exemption=Capital Gains x Cost of new asset/ Net consideration. It may be notedthat this exemption is not available, if on the date of transfer, the assessee owns any houseother than the new asset.

It may be noted that the Finance Act 2000 has provided that with effect from assessment year2001-2002, the above exemption shall not be available if assessee owns more than oneresidential house, other than new asset, on the date of transfer. Investment in the Capital GainsAccount Scheme may be made as in Sec.54.For more information on the subject, please visit Taxability of Capital Gains.

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