Hi , My In-laws sold their home for 1 cr inbangalore in 2024. they had bought land in 2002 for 1.5 lakhs and built home in 2008 for 25 lakhs. how much tax they need to pay for the captital gain or which bounds are good for investing to avoid the tax. they are 63 yrs old.
Ans: Capital gain amount is derived by deducting indexed cost from sale consideration.
Assuming land is acquired in FY 2002-03 in 1.5 lacs, indexed cost will be Rs.497143 and Assuming property is constructed in FY 2008-09 in 25 lacs, indexed cost will be Rs.6350365. Total will be 6847508
accordingly there will capital gain will be Rs.31,52,492 taxable @20%.
You can calculate the indexed cost from the income tax calculator https://incometaxindia.gov.in/Pages/tools/indexed-cost-of-acquisition-or-improvement.aspx
For bonds please check with bank