Mr. Yuvaraj sold the following assets during the ended 31-3-2022.
Particulars
1. Shop purchased in 2002-03 (CII 105) for Rs.18,000
Sale proceed Rs 70000
2.Machinery purchased in 2007-08 (CII 129) for Rs.50,000 WDV on 1.4.2020 Rs. 35,000)
Sale proceed 60000
3.Furniture Purchased on 1.5.2021 Rs.1,000
Sale proceed Rs1300
4. Agriculture land purchased in Coimbatore in 1979 - 80 for Rs. 10,000 (F.M.V. on 1.4.2002 (CII:100) being 15,000)
Sale proceed Rs80000
5.One residential house purchased in 2010-11 (CII:167) costing Rs.30,000
Sale proceed Rs98,200
Compute taxable capital gain (CII for 2021-2022: 317)
To compute taxable capital gain, we need to calculate the indexed cost of acquisition for each asset and subtract it from the sale proceeds.
1. Shop:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 18,000 x (317 / 105) = 54,180
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 70,000 - 54,180 = 15,820
2. Machinery:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 35,000 x (317 / 129) = 85,736
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 60,000 - 85,736 = -25,736 (Loss)
3. Furniture:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 1,000 x (317 / 317) = 1,000
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 1,300 - 1,000 = 300
4. Agriculture Land:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 15,000 x (317 / 100) = 47,310
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 80,000 - 47,310 = 32,690
5. Residential House:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 30,000 x (317 / 167) = 56,988
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 98,200 - 56,988 = 41,212
Total Taxable Capital Gain = 15,820 + (-25,736) + 300 + 32,690 + 41,212 = 64,286