Selling Commercial Property-capital gain calculation

I have sold a commercial property in this financial year which was bought as a plot in FY 2005-06 and there after construction was done.
How to calculate Cost of Improvement that I can add to reduce my capital gain amount. I am planning to buy 54EC bond for that amount.

Hi @somya_chaturvedi, you can list down the cost of improvement and the expenses year wise. You can then claim the indexation benefit by year on those costs.

Also, I would suggest you to go through this to understand how capital gain tax on sale of property works. Let me know if you continue to face any issues, would love to help you with it. :blush:

Thanks alot for reply

Actually the construction was done in FY 2005-06,and at that time mostly cash payments were done.
Subsequently some more maintainence works and other additions were done in following years.
How to know the exact value of consideration as maintainence cost will reduce net capital gain amount. Can we take the value as per own estimated expenses and calculate final gain or do we need some document to support


Always happy to help @somya_chaturvedi, you can not claim cash as estimated expenses, you will need to have proof of payments like bank account statements to claim your expenses. Let me know if you need any further assistance. :blush:

A lady purchase land in 2015 worth 5,00,000. In 2018 she took a loan of 28,00,000 to construct a house. Current age of the lady is 66… Now she is selling the House to his son for 60,00,000… How much tax she needs to pay now ? How can she save it

Hi @Shubhanksa

You can consider the sale price of Rs. 60lakh and claim the indexation benefit on purchase price of Rs. 5Lakh, list down the cost of improvement, and if incurred transfer expenses year wise.
Then the remaining Capital Gains would be taxable.

You may refer to this article to understand how capital gain tax on sale of property works.

Hope this helps.

Thanks for your valuable inputs