Mr. Sharma, a prudent investor, acquired gold jewellery for ₹ 3,25,000 in January 2023 to diversify his portfolio. Capitalizing on a market surge,…

Computation of capital gain tax paid by Mr. Sharma for A.Y. 2026-27 Particulars Amount (₹) Amount (₹) On sale of jewellery Sale consideration 4,75,000 Less: Cost of acquisition 3,25,000 Long term capital gains [Since jewellery held for more than 24 months] 1,50,000 On sale of house property Full Value of Consideration [Stamp duty value of ₹ 90 lakhs, since stamp duty value of ₹ 90 lakhs exceed actual consideration of 80 lakhs by more than 10%] 90,00,000 Less: Cost of acquisition [₹ 10,00,000] 10,00,000 80,00,000 Cost of acquisition Higher of -Actual cost ₹ 8,80,000 + ₹ 8,800 = ₹ 8,88,800 and Lower of Fair Market Value (FMV) as on 1.4.2001 of ₹ 10.8 lakhs and stamp duty value of ₹ 10 lakhs. Capital Gain chargeable to tax 81,50,000 Tax on capital gains Tax on LTCG on sale of jewellery [₹ 1,50,000 x 12.50%] 18,750 Tax @12.5% on LTCG on sale of house property [As the asset is a long term capital asset, being land or building acquired before 23.07.2024 and transferred on or after 23.07.2024 by a resident individual, the tax shall be computed with indexation @20% and without indexation @12.5%, whichever is beneficial to the assessee.] Tax @20% with indexation – 10,00,000 Sale consideration ₹ 90,00,000 Less: Indexed cost of acquisition ₹ 10,00,000 x 376/100 = ₹ 37,60,000 LTCG = 52,40,000 Tax @20% = 52,40,000 x 20% = ₹ 10,48,000 Tax @12.5% without indexation – Tax @12.5% = ₹ 80,00,000 x 12.5% = ₹ 10,00,000 10,18,750 Add: Surcharge @10% [Since total income exceeds ₹ 50 lakhs but does not exceed ₹ 1 crore] 1,01,875 11,20,625 Add: HEC@4% 44,825 Tax on capital gain 11,65,450