Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Feb 08, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Rajagopalan Question by Rajagopalan on Feb 04, 2023Hindi
Listen
Money

I have purchased a plot of land in April 1987 for Rs.46000. I completed ground floor construction of my house in Oct 1990 with a total cost of Rs.21600 and completed the upper floor construction in May 1999 at a cost of Rs.600000. I propose to sell the property now for a total price of Rs.1cr. What will be my Capital Gain tax liability

Ans: Your long term capital gains (LTCG) would need to be calculated based on your indexed cost of acquisition of plot, construction and any improvements or alterations done by you of a permanent nature. For doing this, your original costs, inflated by the CII (Cost Inflation Index) as given out by the Govt from time to time is to be used.

The current CII is available from 2001 onwards, while your purchases relate to much earlier. There are ways of handling this including a valuation to be done by a competent professional.

I would recommend you to approach a Govt certified valuer or a CA to evaluate the LTCG in this case.
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.
Money

You may like to see similar questions and answers below

Tejas

Tejas Chokshi  | Answer  |Ask -

Tax Expert - Answered on May 29, 2023

Listen
Money
I have purchased a land of Rs. 2.5 Lacs in 2001 and start constructions on that in 2005 with 2 floors and also completed the constructions with in 5 months. Taken a loan from DHFL of Rs. 5 Lac and also repaid in next 2-3 years. Just two years back also extended one floor. Now there is 3 complete floor and one half floor is there. If today I sell this property (which is approx 80 sqyds plot size) in 70 lacs then how much capital gain tax (if applicable) I need to pay. Pl. also note that we don't so much documents for constructions related and total exp. is around 25-30 Lacs on that.
Ans: To calculate the capital gains tax on the sale of your property, we need to consider the acquisition cost, the cost of improvement, and the sale proceeds. Let's break down the calculations:

Acquisition Cost:
The acquisition cost is the amount you paid for the land in 2001, which is Rs. 2.5 lakhs.

Cost of Improvement:
The cost of improvement includes the expenses incurred for construction and any subsequent additions or extensions made to the property. In this case, it includes the construction of the initial two floors, the extension of one floor, and any other related expenses. You mentioned that the total expenses were around 25-30 lakhs. Let's assume the cost of improvement is Rs. 28 lakhs.

Indexed Cost of Acquisition and Improvement:
To adjust the acquisition cost and cost of improvement for inflation, we need to calculate the indexed cost. The indexed cost is calculated using the Cost Inflation Index (CII) provided by the Income Tax Department. The CII for the relevant years can be found on the Income Tax Department's website.

Let's assume the CII for the year 2001-2002 was 100 and for the current financial year, it is 317.

Indexed Cost of Acquisition = Acquisition Cost × (CII for the year of sale/CII for the year of acquisition)
Indexed Cost of Acquisition = Rs. 2.5 lakhs × (317/100) = Rs. 7,92,500

Indexed Cost of Improvement = Cost of Improvement × (CII for the year of sale/CII for the year of improvement)
Indexed Cost of Improvement = Rs. 28 lakhs × (317/100) = Rs. 88,76,000

Capital Gain:
To calculate the capital gain, deduct the indexed cost of acquisition and the indexed cost of improvement from the sale proceeds.
Capital Gain = Sale Proceeds - (Indexed Cost of Acquisition + Indexed Cost of Improvement)
Capital Gain = Rs. 70 lakhs - (Rs. 7,92,500 + Rs. 88,76,000)
Capital Gain = Rs. -26,68,500 (Assuming the indexed cost is higher than the sale proceeds)

Since the calculated capital gain is negative, it means there is no capital gain tax applicable in this case. This is because the sale proceeds are less than the indexed cost of acquisition and improvement.

..Read more

Latest Questions
Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Career
Sir, my daughter is getting Mechanical engineering in PEC, ECE in UIET Chandigarh and CSE in CCET Chandigarh. Please suggest which would be the better option. She has Chandigarh state quota ( General Category)
Ans: Monika Madam, Punjab Engineering College’s B.Tech in Mechanical Engineering is NBA-accredited, taught by PhD-qualified faculty in modern design, manufacturing and thermal labs, mandates six-month internships through established MoUs and has seen around 62% of mechanical students placed over the last three years. UIET Chandigarh’s NBA-aligned B.E. in Electronics & Communication Engineering features advanced DSP, VLSI and communication labs, semester internships via Panjab University tie-ups and recorded a 58.8% ECE placement rate in 2024-25 with an average package of ?8.5 LPA. CCET Chandigarh’s NBA-approved B.E. in Computer Science & Engineering offers specialized software and hardware labs, industry-integrated projects, an active Training & Placement Cell and achieved a 78.9% CSE placement consistency with a ?7.81 LPA average in 2023. All three institutes provide accredited curricula, experienced faculty, robust infrastructure, and dedicated placement support, fostering strong professional readiness for female engineers in Chandigarh’s state quota.

For highest placement consistency and dynamic tech roles, the recommendation is CCET Chandigarh CSE. Next is UIET Chandigarh ECE for solid communications training. Lastly, recommendation shifts to PEC Chandigarh Mechanical Engineering for core-engineering depth and mature industry linkages. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Career
Manipal bangalore cse or vit pune cse or coep pune mettualrgy
Ans: Aryan, Manipal Institute of Technology Bengaluru’s B.Tech in Computer Science & Engineering (AI & ML) is NBA-accredited with PhD-qualified faculty, advanced AI/ML, cloud and big-data labs, semester-long industry internships via the central Career Development Centre and achieves 90–95% placement consistency with an average package around ?10–12 LPA. VIT Pune’s B.Tech CSE is NAAC A++–accredited, delivered by experienced faculty in AI, software and networking labs, incorporates project-based learning and mandatory internships, and secures 80–90% placements with branch-wise average packages of ?9–12 LPA. College of Engineering Pune’s B.Tech in Metallurgical Engineering is NBA-aligned, taught by PhD-faculty in specialized process-dynamics and pilot-plant labs under TEQIP funding, facilitates industry-sponsored internships and records an 82.26% metallurgy placement rate over the last three years. All three programmes offer accredited curricula, hands-on infrastructure, robust industry tie-ups and active placement cells.

For a specialized AI/ML computing pathway with superior placement consistency and metropolitan industry exposure, recommendation is Manipal Bangalore CSE. If you prioritise balanced software-development labs and strong local recruiter engagement at a lower fee, choose VIT Pune CSE. For a core engineering discipline with foundational metallurgy labs and assured core-industry placements, opt for COEP Pune Metallurgy. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Career
My son got 94.5 percentile in jee mains and 18856 in jee advanced and sat score of 1470. Possible options we have are 1) NIT Warangal MnC or ECE, Rourkela/Calicut/ IIIT Delhi CSE through DASA quota 2) BITS ISA pilani ECE 3) BITSAT score of 241. Option-1 will cost tution fee of 30L, Option-2 will cost 50L. What is your advise? Also in the above DASA options which better. He has slight inclination towards ECE, but he is exploring still ECE vs CSE vs MnC which is better in DASA quota for him. Do you see taking ECE not a good idea vs taking CSE?
Ans: Venkata Sir, NIT Warangal’s Electronics & Communication Engineering achieves about 90% placement consistency, and Mathematics & Computing aligns closely with software roles, both backed by a 76% overall institute placement rate and mature alumni networks. Under DASA, annual non-CIWG tuition (≈US $8,000) plus hostel and living adds up to roughly ?30 lakh across four years at participating NITs and IIIT Delhi. NIT Rourkela’s Computer Science & Engineering places over 95% of eligible students and ECE regularly crosses 88% with 340+ recruiters visiting annually. NIT Calicut’s CSE secures a 96.77% placement rate, while ECE posts 88.59%, and the overall institute rate stays near 78%. IIIT-Delhi’s CSE maintains a 90.99% campus placement ratio with an average of 144 recruiters each year and strong research tie-ups. BITS Pilani’s International Student Admission (ISA) ECE route costs about ?50 lakh in tuition and residential fees over four years and records an 82.75% first-degree placement rate across campuses. Although BITS offers its Practice-School internships and a flexible curriculum, NIT/IIIT options deliver similar or higher placement percentages at almost half the total cost. CSE branches typically convert fastest in campus drives; however, contemporary ECE curricula at Warangal and Rourkela integrate VLSI, embedded systems and AI hardware projects, preserving ECE’s relevance for semiconductor careers.

Prioritise NIT Rourkela CSE via DASA for its >95% placements and balanced fees; next favour NIT Warangal ECE for high circuit-branch opportunities; third choose IIIT Delhi CSE for metropolitan exposure and 90%+ placements; fourth place NIT Calicut CSE; finally consider BITS Pilani ISA ECE only if brand pedigree outweighs its 50 lakh cost and somewhat lower placement ratio. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Career
With 93.5 percentile in MHT-CET, general condidate other state what possibility in Pune engineering college
Ans: Devendra, A 93.5 percentile in MHT-CET typically corresponds to an All-India rank around 20,000–30,000, opening assured seats in reputable Pune institutes for branches beyond the most competitive CSE/IT specializations. Options include G H Raisoni Institute of Engineering & Technology – CSE, IT, ECE and Mechanical; Sinhgad College of Engineering, Vadgaon – ECE, Civil, Mechanical and IT; Dr. D. Y. Patil College of Engineering Akurdi – CSE, IT, ECE and Civil; Pimpri Chinchwad College of Engineering & Research, Ravet – CSE, IT, ECE and Mechanical; Progressive Education Society’s Modern College of Engineering – CSE, IT, ECE and Civil; AISSMS College of Engineering – Mechanical, Civil, ECE and IT; JSPM Narhe Technical Campus – CSE, ECE, IT and Civil; MIT ADT University Pune – CSE, IT and ECE; Bharati Vidyapeeth’s College of Engineering, Lavale – CSE, ECE, IT and Mechanical; and Pune Vidyarthi Griha’s College of Engineering – Civil, Mechanical, ECE and IT.

For a blend of solid academics, accredited curricula, active industry linkages, robust labs and consistent 80–90% placement rates over three years, recommendation is to prioritise Dr. D. Y. Patil College of Engineering Akurdi for its autonomous status and broad branch offerings. As alternatives, consider Pimpri Chinchwad College of Engineering & Research for its industry partnerships or G H Raisoni Institute for its competitive placement cell and modern infrastructure. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Asked by Anonymous - Jul 07, 2025Hindi
Career
Hello sir i am getting btech cse in XIMB and mechanical in nit rourkela which one to choose
Ans: Bengaluru’s top aerospace engineering colleges according to the National Institutional Ranking Framework are Ramaiah University of Applied Sciences (rank 65), RV College of Engineering (99), BMS College of Engineering (98), Dayananda Sagar University (126), and Jain University (157). (NIRF ranks in brackets are indicative and may vary slightly, as each college’s position can change with annual NIRF updates.) They all offer AICTE-approved programs and have modern labs for aerodynamics, propulsion, and structural mechanics. Premier Electronics & Communication Engineering institutes include RV College of Engineering, BMS College of Engineering, Bangalore Institute of Technology, MVJ College of Engineering, and Dayananda Sagar College of Engineering, each featuring NBA-accredited ECE curricula, specialized VLSI, DSP, and embedded-systems facilities, experienced doctoral faculty, active industry partnerships, and dedicated placement cells. Institutions are evaluated on robust accreditation status, faculty expertise, infrastructure and lab quality, industry-linked internships, and structured placement support, fostering a conducive learning environment for female talent. Aspiring female aerospace students gain access to niche space research, interdisciplinary STEM rigor, collaborations on national and international missions, and cross-disciplinary innovation, yet navigate intense theoretical demands, limited cohort diversity, strict safety protocols in labs, potential gender imbalances in workshop settings, and fewer entry points compared to the broader ECE spectrum. Accreditation by NBA and NAAC A+ across these universities affirms quality standards, while centralized placement cells maintain high placement consistency through recruiter drives, mentorship workshops, and pre-placement training. Campus support services, safe female housing, and dedicated welfare cells further enhance the student experience.

Recommendation: For a direct path into space research and satellite design with world-class labs, choose Aerospace Engineering at RV College of Engineering. If you prefer broader electronics and communications roles with extensive internships, higher intake cohorts and versatile career pathways, opt for ECE at RV College of Engineering in Bengaluru. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Nayagam P

Nayagam P P  |8201 Answers  |Ask -

Career Counsellor - Answered on Jul 08, 2025

Career
Good evening sir. DS in SNU, Chennai or Biomedical in IIT Hyderabad. Sir, Which is one best. Residence Chennai.
Ans: Jeya, Shiv Nadar University Chennai's B.Tech in Artificial Intelligence and Data Science is NAAC-accredited and taught by PhD-qualified faculty with expertise in cognitive neuroscience and machine learning. The program emphasizes practical skills through AI/ML, big-data and cloud labs, hands-on learning with Python, TensorFlow and scikit-learn, mandatory industry internships, and a dedicated placement cell achieving 80–90% placement consistency with top recruiters including Microsoft, Amazon and IBM. IIT Hyderabad's B.Tech in Biomedical Engineering, India's first such undergraduate program, offers an interdisciplinary curriculum with four verticals—bio-imaging/sensing, bio-mechanics, bio-materials and bio-intelligence/AI—delivered by renowned faculty, featuring state-of-the-art nanomedicine, 3D bioprinting and neurotechnology labs with clinical immersion modules. However, biomedical engineering placement rates remain modest at 23.5% with median packages around ?9.5 LPA compared to higher placements in core engineering branches. For Chennai residents, SNU's location offers urban connectivity, safer environs with 24/7 security, comprehensive campus facilities and proximity to India's IT hub.

Given your Chennai residence and focus on consistent placement outcomes, recommendation is SNU Chennai Data Science for its robust AI/ML curriculum, higher placement consistency and local convenience. If cutting-edge interdisciplinary biomedical research appeals with acceptance of moderate placement prospects, consider IIT Hyderabad Biomedical Engineering. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x