• I am a retired senior citizen. I purchased a flat in 2004 and now I want to sell it. How much do I have to pay as long-term capital gains tax? What is the inflation index and what needs to be done to avoid or minimise tax?

L. B. Ray, email

• You have to find out the fair value of your property as on April 2001. The amount of capital gains is the difference between the sale value and the inflation adjusted fair value. The cost inflation index in 2018-19 is 280 and in 2001-02 was 100. You can save tax on capital gains by investing in another property or buy capital gains bond issued by government agencies.

Form for senior

• I am a senior citizen above 60 years and my total income for 2018-19 will be around Rs 5,40,000. If the tax in the relevant assessment year is nil after availing all deductions, can I submit Form 15H with the bank so that it does not deduct tax at source?

Subhasis Mukherjee, email

• You can file Form 15H if the taxable income for an assessment year is less than the income tax exemption limit. For senior citizens above 60 years but less than 80 years, the limit is Rs 3 lakh.

Interest calculation

• I have an FD with the SBI . When I asked for an interest statement for 2017-18, I received the following information: (a) Interest paid: Rs 2,24,142 (b) Interest accrual: Rs 1,07,867. Shall I calculate tax taking both the interest as income for the year. I find that in traces 26AS, only the interest paid has been shown as amount paid/credited?

Sanjay Kumar Ghosh, email

• It would depend on the kind of accounting system you follow under section 145 of the income tax act - cash or mercantile system. In cash accounting, an inflow or outflow of cash is recorded. In accrual accounting, the income and expenses are recorded immediately when it arises.

If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abp.in, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001.