Annamalai Academy

CA | CMA Classes
--------------------------------------------------------------------------------------------------
Question 1- Solution
Computation for Taxable Capital Gains for Mr.Jain for AY 2023-24
Short Term Capital Gain
- Hadco Ltd Shares
Sale Consideration 40,000
(Less) Sale Expenses --
40,000
(Less) Cost of Acquisition 20,000 20,000

- UTI Bonds
Sale Consideration 1,50,000
(Less) Sale Expenses 2,000
1,48,000
(Less) Cost of Acquisition 50,000 98,000

- Buildings
Sale Consideration 4,00,000
(Less) Sale Expenses 60,000
3,40,000
(Less) Cost of Acquisition 5,00,000
(1,60,000
- Machinery
Sale Consideration 40,000
(Less) Sale Expenses 1,000
39,000
(Less) W.D.V Machinery 50,000 (11,000)

- Varona Ltd Debentures

Sale Consideration 50,000
(Less) Sale Expenses ------
50,000
(Less) Cost of Acquisition 30,000 20,000
Short Term Capital Loss (33,000)
_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Long Term Capital Gain
- Ralmop Ltd Shares
Sale Consideration 2,00,000
(Less) Sale Expenses 2,000
1,98,000
(Less) Indexed Cost of Acquisition 21,994 1,76,006
(20,000 x 331 / 301)

- Residential House
Sale Consideration 80,00,000
(Less) Sale Expenses 1,00,000
79,00,000
(Less) Indexed Cost of Acquisition 33,10,000
(10,00,000 x 331 / 100)

(Less) Indexed Cost of Improvement 3,84,884 42,05,116

(1,50,000 x 331 / 129)

- Land
Sale Consideration 15,00,000
(Less) Sale Expenses 1,00,000
14,00,000
(Less) Indexed Cost of Acquisition 1,30,315
(1,00,000 x 331 / 254)

(Less) Indexed Cost of Improvement 73,015 11,96,670

(60,000 x 331 / 272)
Long Term Capital Loss 31,84,452

Short Term Capital Loss (33,000)

Long Term Capital Gain 31,84,452
Taxable Capital Gain 31,51,452

_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Question 2 Solution

Computation of Taxable Capital Gain of Me. Selvan for AY 2023-24

Long Term Capital Gain

- Residential House Property

Sale Consideration 70,00,000
(Less) Sales Expenses --------

(Less) Indexed Cost of Acquisition 31,11,966

(11,00,000 x 331 / 117)

(Less) Indexed Cost of Improvement 5,94,611 32,93,423

(3,00,000 x 331 / 167)

(Less) Exemption U/s 54 25,00,000

Long Term Capital Loss 7,93,423

• Section 48
- If Stamp Valuation Exceed 120% of Sale Consideration , then Stamp
Valuation shall be considered as Sale Consideration
- If Stamp Valuation does not Exceed 120% of Sale Consideration , then
Actual Sale Consideration is to be taken

Computation of Taxable Capital Gain of Me. Selvan for AY 2024-25

Long Term Capital Gain

- Residential House Property

Sale Consideration 40,00,000
(Less) Sales Expenses --------

(Less) Cost of Acquisition

(25,00,000 Already Claimed as ---
exemption in PY)

(Less) Deposited in NHAI

Exemption U/s 54 EC --- 40,00,000
_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Not Allowed. Since Investment Made
After 6 Months

Short Term Capital Loss 40,00,000

Question 3 Solution

Long Term Capital Gains

Property 1
Sales Consideration 10,00,000
(Less) Sales Expenses --
10,00,000
(Less) Indexed Cost of Acquisition 53,752 9,46,248
(19,000 x 331 / 117)

Property 2
Sales Consideration 42,00,000
(Less) Sales Expenses 64,000
(2% on 32,00,000) 41,36,000

(Less) Indexed Cost of Acquisition 44,97,283 (3,61,283)

(25,00,000 x 331 / 184)

Long Term Capital Gain 5,84,965

• Manish Could not claim exemption U/s 54

• He has invested Capital Gain after 6 months from the date of sale of assets
• Asset Sale Date February,2023
• Capital Gain Deposit Account on SBI 20-11-2023
• Section 48
- If Stamp Valuation Exceed 120% of Sale Consideration , then Stamp
Valuation shall be considered as Sale Consideration
- If Stamp Valuation does not Exceed 120% of Sale Consideration , then
Actual Sale Consideration is to be taken

_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Question 4 Solution

Computation for Taxable Capital Gains for Mr.Y for AY 2023-24

Short Term Capital Gain

- Listed Shares
Sale Consideration 80,000
(Less) Sale Expenses --
60,000
(Less) Cost of Acquisition 20,000 20,000

Short Term Capital Loss 20,000

Long Term Capital Gain

- Urban Agricultural Land
Sale Consideration 15,00,000
(Less) Sale Expenses ----------
15,00,000
(Less) Indexed Cost of Acquisition 14,06,750
(4,25,000 x 331 / 100) 93,250

(Less) Exemption U/s 54 B 93,250 -------

- Gold
Sale Consideration 7,00,000
(Less) Sale Expenses ----------
7,00,000
(Less) Indexed Cost of Acquisition 5,79,957
(2,05,000 x 331 / 117)

(Less) Exemption U/s 54 F 1,20,043

(1,20,043 x 1,96,000 / 7,00,000) 33,612 86,431

_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Long Term Capital Gain

- Residential House Property

Sale Consideration 50,00,000
(Less) Sales Expenses --------

(Less) Indexed Cost of Acquisition 49,65,000

(15,00,000 x 331 / 100)

(Less) Indexed Cost of Improvement 5,13,178 (4,78,178)

(2,00,000 x 331 / 129)

Long Term Capital Loss (3,91,747)

Long Term Capital Loss 3,91,747

Short Term Capital Loss 20,000

• Long Term Capital Loss Could not be set off against any other loss and to be carried
forward
• Rs.20,00,000 invested in capital gain scheme could not be claimed as exemption because
the house property gives a capital gain loss

Question 5 Solution

Computation of Capital Gains of HUF for AY 2020 – 2021

Particulars Amount
Compensation Received 12,00,000
Less: Litigation Expenses 40,000
Net Compensation 11,60,000

Less:
Indexed Cost Acquisition
3,00,000 x 331 / 105 9,45,714
_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Long Term Capital Gain 2,14,286

Less:
Exemption Us 54
Investment for
Residential House Rs.15,00,000 2,14,286
Chargeable Capital Gain Nil

Computation of Capital Gains of HUF for AY 2021 – 2022

Particulars Amount
Additional Compensation Received 8,00,000

Less:
Exemption Us 54
Investment for
Residential House Rs.15,00,000 8,00,000
Chargeable Capital Gain Nil

Computation of Capital Gains of HUF for AY 2022 – 2023

Particulars Amount
Additional Compensation Received 5,00,000

Less:
Exemption Us 54
Investment for
Residential House 4,85,714
Rs.15,00,000 – 2,14,286 – 8,00,000
Chargeable Capital Gain 14,286

Question 6 Solution

Computation of Capital Gains of Jayan for AY 2019 – 2020

Particulars Amount
Sale Proceeds 27,00,000
Less: Indexed Cost of Acquisition 8,00,000
3,00,000 x 280 / 105
Long Term Capital Gain 19,00,000

_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in
 Less:
Exemption Us 54B
Investment for
Agricultural Land 5,00,000
Deposit in Capital Gain Scheme 5,00,000 10,00,000
Chargeable Long Term Capital Gain 9,00,000

(A) Computation of Capital Gains of Jayan for AY 2021 – 2022

Particulars Amount
Amount Deposited in Capital Gain Scheme 5,00,000
Less:
Amount withdrawn for investment in
New Agricultural land 4,00,000
Chargeable Short Term Capital Gain 1,00,000

(B) Computation of Capital Gains of Jayan for AY 2021 – 2022

Particulars Amount
Amount withdrawn Deposited in Capital Gain 5,00,000
Scheme
Chargeable Short Term Capital Gain 5,00,000

(C)Computation of Capital Gains of Jayan for AY 2022 – 2023

Particulars Amount
Sale Consideration of New Land 20,00,000
Less:
Cost of Acquisition 4,00,000 -------

Chargeable Short Term Capital Gain 20,00,000

_______________________________________________________
Dr P Neelakantan Annamalai Academy www.annamalaiacademy.co.in