On 23rd December, 2018, Rajat sold 500 grams of gold, the sale consideration of which was * 13,50,000. He had acquired this gold on 20th August, 2000 for 4,00.000. Fair market value of 500 grams of gold on 1st April, 2001 was 3,60,000. Find out the amount of capital gain chargeable to tax for the assessment year 2019-20. S30 Computation of capital gains of Rajat for the A. Y. 2019-20 Particulars Working Amount Sale consideration 13,50,000 Less: Expenses on transfer Nil Net Sale consideration 13,50,000 Less: Indexed cost of acquisition 4.00.0001 x 11.20.000 280/100 Long term capital gain 2,30,000 If an asset is acquired before 1/4/2001 then its cost of acquisition will be higher of the following: a) Actual cost of acquisition; or b) Fair market value of the asset as on 1/4/2001 Illustration Mr. bal Krishnan provides you the following information relating to the sale of his only residential house. Calculate his capital gain for the assessment year 2019-20. Sold the house in Sept 2018 5000000 Expenditure incurred in connection with transfer 25000 House purchased in January 1987 240000 Fair market value on Ist may 2001 420000 Purchased another residential house in January 2019 1050000 Invested in bond issued by NHA u/s 54EC in jan 2019 850000 The cost of inflation index in 2001-02 was 100 and for 2018-19 280