I have a residential land that was bought in December 2001, registered for a value (cost of land) of Rs.1.75 lakhs. Then by December 2004, I have completed construction of residential building in that land and the cost of construction was Rs.10 lakhs.
Now I am planning to sell the entire property for Rs.34 lakhs (value split: land - 24.75 lakhs, building - 9.25 lakhs) by Feb 2007.
Given the above numbers & dates, I would like to confirm that the gain is long term capital gain (LTCG)? Correct me if I am wrong.
Can I include the construction cost as the cost of improvement of the property in calculating LTCG?
What would be the rate of tax, service/surcharge/any other tax, if any, for LTCG per above asset transfer?
Thanks in advance,
Ram
2007-01-30
00:00:19
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4 answers
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asked by
Ram
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