Mr. Rajkumar bought a residential house for 5 crores in March 2016. He entered into an agreement for sale of the said residential house with Ms.…

Computation of capital gains of Mr. Rajkumar for A.Y. 2024-25 Particulars ₹ (in crores) Actual sale consideration 17 crores Value adopted by Stamp Valuation Authority 19 crores [Where the actual sale consideration is less than the value adopted by the Stamp Valuation Authority for the purpose of charging stamp duty, and such stamp duty value exceeds 110% of the actual sale consideration, then, the value adopted by the Stamp Valuation Authority shall be taken to be the full value of consideration as per section 50C. However, where the date of agreement is different from the date of registration, stamp duty value on the date of agreement can be considered provided the whole or part of the consideration is received by way of account payee cheque/bank draft or by way of ECS through bank account or through prescribed electronic modes on or before the date of agreement. In this case, since advance of 1.7 crores is received by account payee bank draft, stamp duty value on the date of agreement can be adopted as the full value of consideration. Gross Sale consideration (Stamp duty value on the date of agreement, since it exceeds 110% of the actual consideration) 19 Less: Brokerage @1% of sale consideration (1% of 17crores) 0.17 Net Sale consideration 18.83 Less: Indexed cost of acquisition [5crores x 348/254] 6.85 Long term capital gains 11.98 [Since the residential house property was held by Mr. Rajkumar for more than 24 months immediately preceding the date of its transfer, the resultant gain is a long-term capital gain] Less: Exemption under section 54 10 [Where long-term capital gains exceed 2crore, the capital gain arising on transfer of a long-term residential property shall not be chargeable to tax to the extent such capital gain is invested in the purchase of one residential house property in India, one year before or two years after the date of transfer of original asset. However, if the cost of new residential house exceeds 10crores, the amount exceeding 10crore would not be taken into account for exemption. Therefore, in the present case, the exemption would be available in respect of the residential house acquired in Mumbai and to the extent of 10crores only. Long term capital gains chargeable to tax 1.98 Computation of capital gains of Mr. Rajkumar for A.Y. 2025-26 Particulars ₹ (in crores) Sale consideration 15 Less: Cost of acquisition (-) capital gains exempt in A.Y. 2024-25 (₹ 13 - 10) 3 Short term capital gains chargeable to tax 2 [Since the residential house property was held by Mr. Rajkumar for not more than 24 months immediately preceding the date of its transfer]