.....Mr. Kay purchases a house property on April 10, 1992 for ` 65,000. The fair market value of the house property on April 1, 2001 was ` 2,70,000. On August 31, 2003, Mr. Kay enters into an agreement with Mr. Jay for sale of such property for ` 3,70,000 and received an amount of ` 60,000 as advance. However, as Mr. Jay did not pay the balance amount, Mr. Kay forfeited the advance. In May 2008, Mr. Kay constructed the first floor by incurring a cost of ` 2,35,000. Subsequently, in January 2009, Mr. Kay gifted the house to his friend Mr. Dee. On February 10, 2018, Mr. Dee sold the house for ` 12,00,000. CII for F.Y. 2003-04: 109; 2008-09: 137; 2017-18: 272. Compute the capital gains in the hands of Mr. Dee for A.Y.2018-19.
Dec. 08, 2017