Calculator for Capital Gain from Immovable Property

Enter data in applicable bordered cells
A. Purchase
A1Financial Year of Purchase / Acquisition of the Immovable Property
A2Cost Inflation Index for the Year of Acquisition
A3Purchase Price of the Immovable Property
A4 Add: Expenses relating to acquisition (e.g. brokerage, registration charges, legal expenses etc.)
A5Total Cost of Acquisition of the Immovable Property
A6Indexed Cost of Acquisition of the Immovable Property [ A5 x C2 / A2 ]
B. Improvement
B1Financial Year of carrying out improvement(s)
B2Cost Inflation Index for the Year of Improvement
B3Cost of improvements carried out in the property
B4Indexed Cost of Improvement [ B3 x C2 / B2 ]
C. Sale
C1Financial Year of Sale / Transfer of Property
C2Cost Inflation Index for the Year of Sale / Transfer
C3Full value of consideration received for Sale / Transfer
C4Less: Expenses incurred on transfer of the property (e.g. brokerage paid, registration charges and legal expenses)
C5Net Value of Consideration
Long Term Capital Gain [ C5 - (A6 + B4) ]

Exemptions

Section 54:

In case the the immovable property sold / transferred is a residential house, and if out of the capital gains, a new residential house is constructed within 3 years, or purchased 1 year before or 2 years after the date of transfer, then exemption on Long Term Capital Gain is available on the amount of investment in the new asset to the extent of the capital gains. It may be noted that the amount of capital gains not appropriated towards purchase or construction of a new house within 3 years may be deposited in the Capital Gains Account Scheme of a public sector bank before the due date of filing of Income Tax Return. This amount should subsequently be used for purchase or construction of house.

Section 54F:

When the asset transferred is a long term capital asset other than a residential house, and if out of the consideration, investment in purchase or construction of a residential house is made within the 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.
  2. Otherwise, exemption=Capital Gains x Cost of new asset/ Net consideration. It may be noted that this exemption is not available, if on the date of transfer, the assessee owns any house other than the new asset.

It may be noted that the Finance Act 2000 has provided that with effect from assessment year 2001-2002, the above exemption shall not be available if assessee owns more than one residential house, other than new asset, on the date of transfer. Investment in the Capital Gains Account Scheme may be made as in Sec.54.

For more information on the subject, please visit Taxability of Capital Gains.