SMART ACADEMY

SUBJECT : DIRECT TAX

TOPIC : CAPITAL GAIN
Qno1.) Shri ram narain owns a residential house which he purchased on 25-6-1998 for Rs 1,50,000. He
incurred expenses of RS 1,50,000 toward cost of improvement on 20-8-2003 on this residential house.
The fair market value of the house on 1-4-2001 was RS 8,00,000.
He sold this house on 12-12-2018 for Rs 95,00,000.
He purchased a new residential house for Rs 25,00,000 on 20-3-2019.
The cost inflation index for financial year 2001-2002 is 100, for financial year 2003-2004 is 109 and for
financial year 2018-2019 is 280.
You are required tp compute the taxable capital gains for the assessment year 2019-2020.

Qno2.) Mr. shantibushan owns a house property which he acquired in april 1986 for Rs 2,50,000. The
cost of improvement incurred for this property in august 2006 was Rs 3,80,000.
He sold this property in October 2018 for Rs 94,00,000.
He acquired a new house property during January 2019 for Rs 3,00,000.
Compute the taxable capital gains for the assessment year 2019-2020 on the assumption that the fair
market value of the property as on 1-4-2001 was Rs 27,00,000.
The cost inflation index for financial year 2001-2002 is 100 for financial year 2006-2007 is 122 and
financial year 2017-2018 is 280.

Qno3.) Mr. prakash shetye purchased a house property for Rs 15,00,000 on 5th October ,1992. He
constructed a first floor during the financial year 2006-2007 for Rs 5,50,000. He made further
improvement In the financial year 2012-13 for Rs 8,00,000. He constructed 2nd floor during the
financial year 2013-2014 for Rs 12,00,000. He sold the property on 1-2-2019 for Rs 150 lakhs . he paid
brokerage of Rs 50,000 for the sale transaction . fair market value of property as on 1-4-2001 was
16,00,000. Investment in new house property was Rs 25lakhs on 10-3-2019. Compute his capital gain
for the assessment year 2019-2020.

Relevant cost inflation indices are as follows ;

Financial year cost inflation index.

2001-2002 100

2006-2007 122

2012-2013 200

2013-2014 220

2018-2019 280

SMART ACADEMY
 SMART ACADEMY
SUBJECT : DIRECT TAX
TOPIC : CAPITAL GAIN
Qno.4) Ms. Vimla sold a residential building at jodhpur for Rs 35,00,000 on 01-07-2018.
The building was acquired for Rs 3,50,000 on 01-06-2006.
She paid brokerage Rs 30,000 at the time of sale of the building. she invested Rs 7 lakhs in purchase
of a residential building in December 2018.
Compute her taxable capital gain.
Cost inflation index ; 2006-2007 - 122, 2018-2019 - 280.

Qno5.) Mr sunder furnishes the following particulars for the previous year ending 31-3-2019 and
requests you to compute the taxable capital gain;

1.) He had a residential house, inherited from father in march 2010, the fair market value of
which as on 1-4-2001 is Rs 5 lakhs. It was acquired by his father in 1990.
2.) In the year 2012-2013, further construction and improvements cost Rs 6 lakhs.
3.) On 10-5-2018 the house was sold for Rs 50 lakhs . expenditure in connection with transfer Rs
50,000.
4.) On 20-12-2018, he purchased a residential house for Rs 15 lakhs.
Cost inflation index
2001-2002 100
2009-2010 148
2012-2013 200
2018-2019 280

Qno6.) mr.vinod mohite purchased a residential house on 1-6-1999 for Rs 1,00,000. He incurred
expenses of Rs 50,000 towards cost of improvement on 2-7-2003 on this house. The fair market value
of the house on 1-4-2001 was Rs 1,50,000. He sold the house on 10-10-2018 for Rs 40,00,000. He
purchased a new residential house for Rs 20,00,000 on 15-3-2019.

The cost inflation index for financial year 2001-2002 is 100, for financial year 2003-2004 is 109 and for
financial year 2018-2019 is 280.

You are required to compute his income from capital gain for the assessment year 2019-2020.

Qno.7) Mr.selvan, acquired a residential house in January, 2003 for Rs 10,00,000 and made some
improvements by way of additional construction to the house, incurring expenditure of Rs 2,00,000 in
October ,2004. He sold the house property in October, 2018 for Rs 80,00,000. He acquired a
residential house in January, 2019 for Rs 25,00,000. Compute the capital gain chargeable to tax for the
assessment year 2019-2020.

Cost inflation index :F.Y.2002-2003 =105; F.Y. 2004-2005= 113; F.Y. 2010-2011= 167; F.Y. 2018-
2019=280.

SMART ACADEMY
 SMART ACADEMY
SUBJECT : DIRECT TAX
TOPIC : CAPITAL GAIN
Qno.8) Mr. karnik sold on 10-06-2018 his residential house in nashik for Rs 75,00,000. It was
purchased on 07-07-2003 for Rs 7,00,000. Expenses on transfer amounted to Rs 1,20,000.
Mr. kamik incurred expenses on improvement on old house in financial year 2005-2006 of Rs 1,40,000.
He invested Rs 25,00,000 for purchase of new residential house on 31-10-2018.

You are required to compute net capital gain for the assessment year 2019-2020.

Relevant cost inflation indices are as under;

Financial year CII

2003-2004 109
2005-2006 117
2018-2019 280

Qno.9) Mr. chandru transferred his residential house property on 28-10-2018 for Rs 100 lakhs . the
site was acquired for Rs 9,99,300 on 30-6-2000. He deposited Rs 50 lakhs in eligible bonds issued by
rural electrification corporation (REC) on 20-3-2019.again, he deposited Rs 20 lakhs in eligible bonds
issued by national highways authority of india (NHAI) on 16-04-2019. Compute capital gains of Mr
chandru for the assessment year 2019-2020.

Qno.10) Mr.martin sold his residential house property on 8-6-2018 for RS 80 lakhs which was
purchased by hom for Rs 20 lakhs on 5-5-2005. He paid Rs 1 lakhs as brokerage for the sale of said
property .

He bought another house property on 25-12-2018 for Rs 10 lakhs.

He deposited Rs 10 lakhs on 10-11-2018 in the capital gain bond of national highway authority of india
(NHAI).
Compute income under the head ‘’capital gains ‘’ for A.Y. 2019-20 as per income tax act 1961.
Cost inflation index for financial year 2005-2006= 117 and 2018-2019=280.

Qno.11.) R sells a residential building at jodhpur for Rs 15,00,000 on june 1, 2005.

She pays brokerage @2% at the time of sale off the building .she invests Rs 7 lakhs in purchasing a
residential building on December 2018 and deposits Rs 2 lakhs under section 54EC in bonds of NHAI 9
REDEEMABLE AFTER 3 YEARS ) ON MARCH , 2019.Compute the capital gain chargeable to tax for the
assessment year 2019-2020.

Cost inflation index for financial year 2004-2005=113 and 2018-2019=280.

Qno.12.) Mr. jayesh karnik acquired residential property on 1-3-1992 for Rs 2,00,000. Additional
information pertaining to property was as follows ;

1.) Fair market value as on 1-4-2001 was Rs 2,40,000.

2.) Cost of improvement made by him
Financial year RS
1994-1995 50,000
2006-2007 1,20,000
2015-2016 4,00,000
2016-2017 3,80,000
3.) He sold residential property on 25-1-2019 for Rs 1,80,00,000.

SMART ACADEMY
 SMART ACADEMY
SUBJECT : DIRECT TAX
TOPIC : CAPITAL GAIN
4.) He acquired new residential house for Rs 58,00,000 on 19-3-2019.
5.) He also invested 15,00,000 in rural electrification corporation (REC) bonds on 20-3-2019.
6.) Expenses on transfer amounted to Rs 75,000.
Compute taxable long term capital gain for assessment year 2019-2020.
Financial year CII
2001-2002 100
2006-2007 122
2015-2016 254
2016-2017 264
2018-2019 280

Qno13.) Mr. ranade provides the following particulars of assets transferred by him during the
previous year ended 31st march, 2019 . you are required to compute his income from capital gains
chargeable to tax for assessment year 2019-2020.

A residential house in delhi , which was purchased on 11th November , 2001 at a cost of Rs 14,54,000
and was sold on 16th January 2019 for Rs 1,46,50,000. He incurred transfer expenses of Rs 50,000.Mr.
ranade made the following investments out of the capital gains arising on sale of his residential house

1.) Purchased REC bonds for Rs 10,00,000 on 16th feb 2019.

2.) Purchased a residential flat in Bangalore on 26th march ,2019 for Rs 75,00,000.
Cost inflation index for F.Y. 2018-2019=280.

Qno.14,) Mr.rajesh provides the following particulars of assets transferred by him during the
previous year ended 31st march 2019. You are required to compute his income from capital gains
chargeable to tax for assessment year 2019-2020.

A residential house in Madurai was purchased on 12th December ,2001 at a cost of Rs 18,00,000.he
incurred expenses on improvement of Rs 3,00,000 on the above house during the financial year 2009-
2010. He sold the above house on 16th march ,2019 for Rs 1,21,00,000.

He incurred transfer expenses of Rs 1,00,000 on the sale transaction. He purchased 3 years bonds
issued by rural electrification corporation (REC) for Rs 50,00,000 on 26th march , 2019.

Cost inflation index are as follows ;

Financial year cost inflation index

2001-2002 100

2009-2010 148

2018-2019 280

SMART ACADEMY