Mr. Asif bought a vacant land for 80 lakhs in March 2005. Registration and other expenses were 10% of the cost of land. He constructed a residential…

Computation of income chargeable under the head "Capital Gains" for A.Y.2024-25 Particulars ₹ (in lakhs) ₹ (in lakhs) Capital Gains on sale of residential building Actual sale consideration 600lakhs Value adopted by Stamp Valuation Authority 670lakhs Full Value of Consideration 670.00 [In case the actual sale consideration declared by the assessee is less than the value adopted by the Stamp Valuation Authority for the purpose of charging stamp duty, then, the value adopted by the Stamp Valuation Authority shall be taken to be the full value of consideration as per section 50C. In a case 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 paid by way of account payee cheque/bank draft or by way of ECS through bank account on or before the date of agreement. However, where the stamp duty value does not exceed 110% of the sale consideration received or accruing as a result of the transfer, the consideration so received or accruing shall be deemed to be the full value of the consideration. In this case, since advance of 20lakh is paid by cash, stamp duty value of 620lakhs on the date of agreement cannot be adopted as the full value of consideration and stamp duty value on the date of registration would be considered. However, since stamp duty value on the date of registration exceeds 110% of the actual consideration, stamp duty value on the date of registration would be the full value of consideration] Less: Brokerage@1% of sale consideration (1% of 600lakhs) 6.00 Net Sale consideration 664.00 Less: Indexed cost of acquisition - Cost of vacant land,80 lakhs, plus registration and other expenses i.e.,8 lakhs, being 10% of cost of land [88lakhs × 348/113] 271.01 - Construction cost of residential building (100 lakhs x 348/122) 285.25 556.26 Long-term capital gains before exemption 107.74 Less: Exemption under section 54EC Amount deposited in capital gains bonds of NHAI within six months from the date of transfer (i.e., on or before 09.08.2024) would qualify for exemption, to the maximum extent of 50lakhs. 50.00 Therefore, in the present case, exemption can be availed only to the extent of 50lakh out of 60lakhs, even if the both the investments are made on or before 09.08.2024 (i.e., within six months from the date of transfer). Long Term Capital Gains [Since it was held for more than 24 months] 57.74