Question

Mr. Rahul Sharma purchased a flat (residential house property) in Ghaziabad, India on

01.07.2002 for Rs. 12,00,000. During June 2010, he gifted the property to his nephew Mr.

Ratan Grover. However, Ratan passes away in August 2016 and the property is transferred

through his will in the name of his son Mr. Sanchit Grover. Mr. Sanchit incurred Rs. 2,20,000

during October 2016 and Rs. 1,80,000 during December 2017 on the improvement of thisproperty. He sells the property to Mr. Abhishek on 12.10.2019 for a consideration of Rs.
85,00,000 (Stamp Duty Value is Rs 90,00,000). He paid commission Rs. 20,000 to the agent

for arranging this deal.

He utilised the net sale proceeds as follows:


(i) Purchased Rural Electrification Corporation bonds worth Rs. 18,00,000 on 22.12.2019

(ii) Purchased a residential house property in NOIDA for Rs. 15,00,000 on 05.01.2020.

(iii) Subscribed units of Notified Mutual funds (Equity Linked Savings Scheme) worth Rs.

1,95,000 on 11.02.2020.


Compute the taxable income and tax liability of Mr. Sanchit (age 47 Years, resident individual)

for AY 2020-21.

PY Cost Inflation Index

2001-02 100

2002-03 105

2009-10 148

2010-11 167

2016-17 264

2017-18 272

2018-19 280

2019-20 289​

Answer 1

Answer:

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