I purchased a flat in September 1994 for Rs 2.8 lakh (deed value) at Garia. I had paid Rs 28,040 for the purchase of stamp paper. I sold the flat in July 2014 for Rs 18 lakh, while the valuation of the property was Rs 23,25,800 on July 10, 2014. How much capital gains tax do I have to pay.

Ashok Mukherjee, Garia

Your cost of acquisition of the flat in September 1994 is Rs 3,08,040 (Rs 2,80,000+28,040). The cost inflation index for 1994-95 was 259 and the same in 2014-15 is 1024. So, the indexed cost of the flat is Rs 12,17,888 (3,08,040x1024/259). Deemed sales consideration will be valued at Rs 23,25,080. So, your long-term capital gains is Rs 11,07,912 (23,25,800-12,17,888). Under section 112 of the income tax act, your capital gains tax at 20.6 per cent will be Rs 2,28,230.

Rebate on medical expenses

I am an IT professional. My parents are senior citizens and completely dependent on my income. I spend a lumpsum amount on their medical expenses every month. From my employer, I get a tax benefit of up to Rs 15,000 annually. But the actual medical expenditure is more. Is there a way by which I can claim tax benefit on the medical expenses?

Srabanti Chatterjee, e-mail

Under the provisions of section 80DDB, a resident taxpayer can claim medical expenses, including hospitalisation costs (not covered under mediclaim), for self or dependants for treatment as specified by the Central Board of Direct Taxes. You can submit a certificate in the prescribed form from a specialist doctor working in a government hospital. The amount of deduction is Rs 40,000 (it is Rs 60,000 if the the dependants are at least 60 years) or the actual expenditure, whichever is lower.

Date of birth

My actual date of birth is February 16, 1935 and the same has been recorded in the PAN card. But my date of birth as recorded in the pension pay order is January 17, 1936. Should I get tax benefit of 80 years from 2014-15?

S. Mitra, Calcutta

Your actual date of birth as recorded with the tax authority will make you eligible to get benefit for persons aged 80 years in 2014-15.

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.