Question

. Varma purchased a plot in 1986-87 for Rs: 1,40,000. It was sold on 15-1-2013 for Rs:15,80,000 and he paid Rs:1,00,000 as brokerage. He invested Rs:2,00,000 in NHAI bonds on 31-3-2013 and Rs: 3,10,000 in bonds issued by Rural Electrification Corporation Ltd. on 1-8-2013. Compute his taxable capital gain, if the CII for 1986-87 was 140 and for 2012-13 is 852. *

2 points


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Answer 1

Taxable capital gain = Rs. 4,28,000.

Step-by-step explanation:

Varma purchased a plot for Rs. 1,40,000 and sold it at a profit for Rs. 15,80,000. Brokerage was 1 Lakh INR. He invested 2 Lakhs INR in NHAI bonds and 3.1 Lakhs INR in bonds issued by Rural Electrification Corp Ltd.

Given CII for 86-87 was 140 and 12-13 was 852, we get a net taxable capital gain amount of Rs. 4,28,000.

Please refer the attached picture for the computation presented in accounting format.