Karan purchased a plot in 1987-88 for ₹2,10,000. He sold the plot on 7th February, 2016 for ₹24,00,000 (stamp duty value ₹25,40,000). He paid a brokerage of 5% on selling price to a person who arranged for the sale. Out

Computation of Capital Gain Particulars Amount (in ₹) Sales Consideration of Plot (Stamp duty value u/s 50C has been considered as full value of consideration as the actual sale value is less than the stamp duty value) 25,40,000 Less: Brokerage paid on sale of plot (5% of ₹24,00,000) (1,20,000) Less: Indexed Cost of Acquisition (₹2,10,000 * 1081/150) (15,13,400) Long Term Capital Gain (LTCG) 9,06,600 Less: Exemption u/s 54EC (Purchase of NHAI Bond) 5,00,000 Net Taxable LTCG 4,06,600 Note: Investment in Rural Electrification Corporation Ltd. is not eligible for exemption as it was made after six months from the date of transfer.