23. Mr. Z sold the following assets during the year 2018-19 :
(1) Land purchased in 2001 for 1,40,000 sold for 3,00,000.
(2) Machinery purchased for 12,000 in 2012 sold for 21,000 (W.D.V. * 6,000).
(3) Office furniture purchased in April, 2017 for 1,200 sold for * 1,700.
(4) Shop purchased in 2004-05 for 1,13,000 sold for 1,80,000.
(5) Residential house purchased in 2004-05 for 2,26,000 sold on 15.4.2018 for 10,60,000.
He purchased another residential house on 15.3.2019 for 4,50,000. Compute his taxable
income under the head Capital Gains
Cost inflation index for 2001-02 is 100, 2004-05 is 113 and 2018-19 is 280.
Answers
Answer:yes
Explanation:
Long-term capital gain = full value of consideration received or accruing – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where:
Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.
Short-term capital gain= full value consideration – (cost of acquisition + cost of improvement + cost of transfer).
1) 300000-(140000*100/280)
2) need cost inflation index for 2012 year
3) need cost inflation index for 2017
4) 180000-(113000*113/280)
5) 1060000*(226000*113/280)
There’s is no gain as he did not sell the house purchased on 15.3.2019
Calculate the above and add up all of the above. Then debit cash or bank and credit profit on sale of fixed assets.
Cash account
To capital gains account