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CAPITAL GAINS

CAPITAL GAINS. Calculate the Capital Gains. Aman, while moving out from Bangalore for his studies, sold his flat for Rs. 17 lakhs in June, 2000. He had just bought the flat in January 2000. He had paid the previous owner Rs. 15 lakhs. Calculate the Capital Gains. Cond…

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CAPITAL GAINS

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  1. CAPITAL GAINS

  2. Calculate the Capital Gains Aman, while moving out from Bangalore for his studies, sold his flat for Rs. 17 lakhs in June, 2000. He had just bought the flat in January 2000. He had paid the previous owner Rs. 15 lakhs.

  3. Calculate the Capital Gains Cond… While Aman may have got 17 lakhs in hand, he had to spend Rs. 5,000 for hiring a lawyer, Rs. 10,000 to a real estate agent,and Rs. 15,000 towards stamp duty and registration charges.

  4. Calculate the Capital Gains Cond… Aman came to regret it. When he bought the flat, he had hoped he would be living in it. The floor was not in a good condition. He got it tiled in marble. This cost him Rs. 50,000.

  5. Calculate the Capital Gains Cond… Aman came to regret it. When he bought the flat, he had hoped he would be living in it. The floor was not in a good condition. He got it tiled in marble. This cost him Rs. 50,000.

  6. Calculate the Capital Gains Cond… Aman was not sure if it was such a good deal. While buying the property, he had not only to pay Rs. 15 lakhs to the previous owner, he also had to pay half of the charges for lawyer, real estate agent and stamp duty. This came to Rs. 20,000.

  7. Calculate the Capital Gains Aman before leaving for the US for his studies, in August 2003, sold a painting for 1.5 lakhs. He had to pay charges Rs. 20,000 to an agent dealing in paintings for securing a buyer and negotiating the sale. Aman had bought the painting in August, 1995 for Rs. 80,000. He is left wondering whether he has benefited from the sale.

  8. Calculate the Capital Gains X bought a vintage car for Rs. 6 lakhs in August 1995. He sold it off for Rs. 10 lakhs in November 2002. Calculate the capital gain. Indexed cost of acquisition =(447/281)x 6,00,000 = 9,54,448 Long-term Capital Gain= 10,00,000 - 9,54,448 = Rs.45,552

  9. Calculate the Capital Gains: Case 2 Short-term Capital Gain Short-term capital gain= (1,69,000 +3,000) - 1,24,000 = 42,000.

  10. Calculate the Capital Gains: Case 3 Indexed cost of acquisition = (447/305) x Rs. 7 lakhs  Indexed cost of improvement = (447/351) x Rs. 42,000

  11. Dr. Mishra Buys a Car Dr. Mishra bought his fourth car for his family for four lakhs in May 2001. He sold the car for five lakhs in February 2003. Calculate the capital gain.

  12. Dr. Mishra Buys a Car for clinic Dr. Mishra was a medical practitioner. The day Dr. Mishra had bought the car, he had also bought another car, same make, model and price, for his clinic. The only other vehicle his clinic had was an ambulance, which he had bought for ten lakhs in April 2000. Along with his personal car, Dr. Mishra sold the clinic car also for five lakhs in February 2003.

  13. Previous Year WDV on 1/4 WDV on 31/3 before deductions WDV on 31/3 after deduction 2000-01 0 0 + 10 = 10 8 2001-02 8 8 + 4 = 12 9.6 2002-03 9.6 9.6 – 5 = 4.6 WDV for vehicles for the clinic

  14. WDV if the car had not been bought Previous Year WDV on 1/4 WDV on 31/3 before deductions WDV on 31/3 after deduction 2000-01 0 0 + 10 = 10 8 2001-02 8 8 6.4 2002-03 6.4 6.4

  15. Previous Year WDV on 1/4 WDV on 31/3 before deductions WDV on 31/3 after deduction 2000-01 0 0 + 10 = 10 8 2001-02 8 8 + 4 = 12 9.6 2002-03 9.6 9.6 – 5 = 4.6 WDV for vehicles for the clinic

  16. Previous Year WDV on 1/4 WDV on 31/3 before deductions WDV on 31/3 after deduction 2000-01 0 0 + Amb 10 = 10 Amb 8 2001-02 Amb 8 Amb 8 + car 4 = 12 Amb 6.4 + car 3.2 = 9.6 2002-03 Amb 6.4 + car 3.2 = 9.6 Amb 6.4+(car 3.2 – car 5) = Amb 6.4 + (- car 1.8) = 4.6 Effect of the buying and selling of the car on the WDV

  17. WDV Amb Car (3.2- price) =WDV WDV Amb Car (3.2- Price =WDV 6.4 + (3.2 – 1)= 2.2 = 8.6 6.4 + (3.2 – 8)= -4.8 1.6 6.4 + (3.2 – 2)= 1.2 = 7.6 6.4 + (3.2 – 9)= -5.8 0.6 6.4 + (3.2 – 3)= 0.2 = 6.6 6.4 + (3.2 – 9.6)= -6.4 0 6.4 + (3.2 – 3.2)= 0 = 6.4 6.4 + (3.2 – 10)= - 6.8 - 0.4 6.4 + (3.2 – 4)= - 0.8 = 5.6 6.4 + (3.2 – 4)= - 7.8 -1.4 6.4 + (3.2 – 5)= - 1.8 = 4.6 6.4 + (3.2 – 5)= - 8.8 -2.4 6.4 + (3.2 – 6)= -2.8 = 3.6 6.4 + (3.2 – 6)= -9.8 -3,4 6.4 + (3.2 – 7)= - 3.8 = 2.6 6.4 + (3.2 – 7)= -10.8 -4.4 Comparision of WDV

  18. Architect’s car An architect bought a car for his office use in April 2001 for five lakhs. This was the first and only car bought for the office. He sold off the car in February 2003. Work out the written value of the block

  19. Previous Year WDV on 1/4 WDV on 31/3 before deductions WDV on 31/3 after deduction 2001-02 0 0 + 5 = 5 4 2002-03 4 4 – sale price of the car= WDV for the block

  20. WDV = 4 - Sale Price of the Car 4 – 1 = 3 4 – 2 = 2 4 – 3 = 1 4 – 4 = 0 4 – 5 = - 1 4 – 6 = -2 4 – 7 = -3 4 – 8 = -4 WDV for the empty block

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