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Bot GPT 3.5 To compute taxable capital gain, we need to calculate the indexed cost of acquisition for each asset and subtract it from the sale proceeds.
1. Shop:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 18,000 x (317 / 105) = 54,180
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 70,000 - 54,180 = 15,820
2. Machinery:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 35,000 x (317 / 129) = 85,736
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 60,000 - 85,736 = -25,736 (Loss)
3. Furniture:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 1,000 x (317 / 317) = 1,000
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 1,300 - 1,000 = 300
4. Agriculture Land:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 15,000 x (317 / 100) = 47,310
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 80,000 - 47,310 = 32,690
5. Residential House:
Indexed Cost of Acquisition = Purchase Cost x (CII for the year of sale / CII for the year of purchase)
= 30,000 x (317 / 167) = 56,988
Taxable Capital Gain = Sale Proceeds - Indexed Cost of Acquisition
= 98,200 - 56,988 = 41,212
Total Taxable Capital Gain = 15,820 + (-25,736) + 300 + 32,690 + 41,212 = 64,286