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