SHORT TERM CAPITAL GAINS TAX CALCULATION By: AssetYogi

Full Sale Consideration 5,000,000

Less: Transfer Expenses (brokerage, documentation etc.) 50,000
Net Sale Consideration (N) 4,950,000
Less: Cost of Acquisition (A)
(including stamp duty, registration & brokerage) 4,200,000
Less: Cost of Improvement (I) 500,000
Short Term Capital Gain (N-A-I) 250,000
Tax Rate 30%
Short Term Capital Gains Tax Liability 75,000
LONG TERM CAPITAL GAINS TAX CALCULATION By: AssetYogi

Full Sale Consideration 5,000,000

Less: Transfer Expenses (brokerage, documentation etc.) 50,000
Net Sale Consideration (N) 4,950,000
Less: Indexed Cost of Acquisition (A') 4,454,545
(including stamp duty, registration & brokerage)
Less: Indexed Cost of Improvement (I') 350,000
Gross Long Term Capital Gain (N-A'-I') 145,455
Less: Exemption under section 54, 54EC, 54F, 54B etc. -
Net Long Term Capital Gain 145,455
Tax Rate 20%
Long Term Capital Gains Tax Liability 29,091

Indexed Cost of Acquisition Calculation

Actual Cost of Acquisition 3,500,000
Cost Inflation Index @ Acquisition Year 220
Cost Inflation Index @ Selling Year 280
Indexed Cost of Acquisition (A') 4,454,545

Indexed Cost of Improvement Calculation

Actual Cost of Improvement 300,000
Cost Inflation Index @ Improvement Year 240
Cost Inflation Index @ Selling Year 280
Indexed Cost of Improvement (I') 350,000