Capital Gain Computation
Mode of Computation of Capital Gains in respect of transfer of Immovable property:

Section 48 of the Income-tax Act, 1961 provides for mode of computation of capital gains. This is explained in form of illustration as under:

Capital Gain Computation

                                                                                                                                                        
Full Value Consideration 9,50,000/-
Stamp Duty Valuation
10,00,000/-
Sales consideration or Stamp Duty valuation as per Sec 50 C, whichever is higher
10,00,000/-
Less: Expenditure incurred wholly and exclusively In connection with such Transfer
(50,000)
Net sales Consideration
9,50,000/-
Short Term Capital Asset \ Long Term Capital Asset
 
Less:Cost of Acquisition \  Indexed Cost of Acquisition
(4,50,000)  
Less:Cost of Improvement \ Indexed Cost of Improvement (3,00,000)        (7,50,000)
Taxable Capital Gains  2,00,000