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Ramalingam

Ramalingam Kalirajan  |6302 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 11, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Apr 20, 2024Hindi
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Sir I bought a residential property for 2,05 lakh(including regisrty etc) in Dec 1994,sold it in November 2023 for 6600000....and spent around ten lakhs over these thirty years on renovation time to time....what is the amount of capital gain on this..

Ans: Based on the information you provided, the capital gain on your property sale would be Rs. 6,395,000.

Here's a breakdown of the calculation:

Factor Amount
Sale price of the property Rs. 6,600,000
Cost price (including registry etc.) Rs. 2,05,000
Renovation expenditure (capped at Rs. 2 lakh) Rs. 2,00,000
Indexed cost price (not available) Rs. 2,05,000 (assumed)
Capital gain Rs. 6,395,000


Please note that this is an estimated calculation. The actual capital gain might differ depending on the following factors:

Indexed cost price: If you have data on the inflation index for the period you held the property, you can calculate the indexed cost price which can reduce the capital gains.
Actual renovation expenditure: The calculation considers a maximum deduction of Rs. 2 lakh for renovation expenses. If your documented renovation expenditure is less than Rs. 2 lakh, the capital gain will be slightly higher.
Other selling expenses: Selling expenses like agent commission or brokerage fees can further reduce the capital gains.
It's recommended to consult a tax advisor for a more precise calculation considering your specific situation and claiming any applicable deductions. They can also advise you on the tax implications of the sale.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6302 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

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SIR, I PURCHASED ONE PROPERTY ON 5.2.2013 FOR RS. 4,50,000/- AND SOLD THE SAME PROPERTY ON 6.10.2023 FOR RS. 19,45,000/- WHAT WILL BE THE CAPITAL GAIN.
Ans: Calculation of Capital Gain

1. Determine the Purchase Price:

You purchased the property for Rs. 4,50,000.

2. Determine the Selling Price:

You sold the property for Rs. 19,45,000.

3. Calculate the Capital Gain:

Capital gain is the difference between the selling price and the purchase price.

4. Adjust for Inflation:

Since the property was held for more than two years, it qualifies as a long-term capital asset. To calculate the long-term capital gains (LTCG) accurately, adjust the purchase price for inflation using the Cost Inflation Index (CII). This adjustment helps account for the inflation impact over the holding period.

5. Long-Term Capital Gains Tax:

For properties held long-term, the LTCG tax rate is 20% with indexation benefits. This means you pay tax on the gains after adjusting for inflation.

Detailed Calculation:

Purchase Price: Rs. 4,50,000
Selling Price: Rs. 19,45,000
Capital Gain: Selling Price - Purchase Price = Rs. 19,45,000 - Rs. 4,50,000 = Rs. 14,95,000
After adjusting the purchase price for inflation using the CII, calculate the actual taxable gain. The tax is computed at 20% on the adjusted gain.

Final Insights

You have made a significant gain on your property. The total capital gain before indexation is Rs. 14,95,000. After adjusting for inflation, the taxable gain might be lower. The tax liability will be 20% on the adjusted gain. It’s advisable to consult a Certified Financial Planner or a tax expert to ensure accurate calculations and to explore possible exemptions or deductions that might be available to you.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Hii sir ! This is ritika and I love a boy and we are in relationship since 7 years but there are some behavior of him he always have doubt on me that I am dating another boy he always says that start you screenshare in WhatsApp I even do because I don't want to lose him and he saw all of things of my phone yesterday he again asking for that and I do and there was a tab of instagram which was belongs to my roommate it was her I'd open in my chrome browser where she only wants to delete the I'd which she did from my phone these instagram thing happened approx one year ago but when he saw this I told him that was not mine but he continuously said I am cheater I cheated with him again he was like I know you have two mobile phones and you cheated with me. I love him soo much but he cannot try to accept that . Even I don't talk to my male classmate because he didn't want ki main kisi boy se baat karu Is it fair , am I cheater ? I love him unconditionally I support him in all his career or decision but again he was like I cheated with him we are in long distance relationship but I can't cheat him . Literally I am feeling depressed ????
Ans: Dear Ritika,

Please understand that you did nothing wrong. Why would you even question yourself? You know you never cheated. It's his issue that he cannot trust. Yes, in a relationship we all try to comfort our partners but that too should be to a certain extent. And, in that process, if your mental health is being compromised, I don't see how it's a healthy relationship.

I don't want to tell you what to do, but I would reassure you that YOU DID NOTHING WRONG. You don't need to prove yourself anymore. And I can also assure you that no matter what you do, he will still manage to find some flaws and doubt you. It's a typical behavior we see in some partners. You deserve peace, love, and above all, to be trusted.

Best Wishes.

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Asked by Anonymous - Aug 23, 2024Hindi
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I want to write an email stating I want to resign from my current organisation and employer but I don't want to give a reason for leaving. Can you please suggest how I can do it?
Ans: Here's a format of the email you can use:

Subject: Resignation from [Your Position]

Dear [HR Manager's Name],

Please accept this as a notification of my resignation from my position as [Your Position] at [Company Name], effective [Last Day of Work].

I have thoroughly enjoyed my time at [Company Name] and appreciate the opportunities and experiences I have gained.

Thank you for your understanding.

Sincerely,
[Your Name]
[Your Contact Information]


Discussing Resignation with Your Manager:

When discussing your resignation with your manager, aim for a respectful and professional conversation. Here's how you can approach it:

• Be Direct and Brief: Clearly state your intention to resign and the effective date. Avoid going into lengthy explanations or dwelling on negative aspects of your role.

• Focus on the Positive: Emphasize the positive experiences and opportunities you've had at the company. This shows appreciation and maintains a professional tone.

• Avoid Giving Reasons: If you prefer not to disclose your reasons for leaving, simply state that you're pursuing a new opportunity. You don't owe your employer an explanation.

• Offer Assistance: Be willing to help with a smooth transition, such as training your replacement or completing ongoing projects. This demonstrates your professionalism and commitment to the company.

• Maintain a Positive Attitude: Even if you're leaving for reasons you're not comfortable sharing, try to maintain a positive and respectful demeanor throughout the conversation.

Dos and Don'ts:

• Do: Be polite and respectful, even if you're frustrated or disappointed.
• Do: Offer to help with the transition.
• Do: Express gratitude for the opportunities you've had.

• Don't: Badmouth the company or your colleagues.
• Don't: Get into arguments or heated discussions.
• Don't: Burn bridges by leaving on bad terms.

Remember, your resignation should be handled professionally to maintain a positive relationship with your employer and colleagues. By following these guidelines, you can have a respectful conversation and leave the company on good terms.

All the best!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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