Long Term Capital Gain

Question

Can you please advise me on the followingI bought place and constructed house in it in 2002 with an investment of 10 lakhsNow if I sell it for 15Lakhs , a)What is the indexed acquisition costb)Do we add stamp duty paid for place registration in the total purchase cost of house.c) Do we need to consider sale price fixed by state registrar for property valuationor actual sale deed value which is less than registrar valued) what would be the capital gain tax in this case.e) what are the schemes to invest by which i can get tax exemption.f) If i purchase residential land with this amount, do I get capitalgain tax exemption.g) do I need to invest all 15L for purchasing flat or only capital gains amount to get tax exemption

Answer

In your case : Full value of consideration received Rs.15 lacs

Index for 2010-11 is 711 & Index for 2002-03 is 447, so your indexed cost of acquistion is 10lacs / 447 * 711 = 15,90,604.

As the indexed cost of acquisition is more than your consideration received there is no capital gain tax for you.