In May 2006, Ram purchased gold for Rs. 6,10,000. He sold this gold in June 2020 for Rs. 31,15,000 and paid brokerage Rs. 15,000. He does not have residential house. So, he purchased a residential house in September 2020 for Rs. 35,00,000. The CII for 2006-07 was 122. And for 2020-21 it was 301. Find out capital gains ?

To calculate the capital gains, we need to follow these steps:

1. First, we need to calculate the Indexed Cost of Acquisition. This is done by multiplying the purchase price by the ratio of the Cost Inflation Index (CII) of the year of sale to the CII of the year of purchase.

   Indexed Cost of Acquisition = Purchase price * (CII of year of sale / CII of year of purchase)

   = Rs. 6,10,000 * (301 / 122)

   = Rs. 15,17,213 (approximately)

2. Next, we calculate the net sale consideration. This is the sale price minus any expenses related to the sale (like brokerage).

   Net Sale Consideration = Sale price - Brokerage

   = Rs. 31,15,000 - Rs. 15,000

   = Rs. 31,00,000

3. Now, we can calculate the Long Term Capital Gain (LTCG). This is the net sale consideration minus the indexed cost of acquisition.

   LTCG = Net Sale Consideration - Indexed Cost of Acquisition

   = Rs. 31,00,000 - Rs. 15,17,213

   = Rs. 15,82,787

4. Since Ram purchased a residential house within the specified time, he can claim exemption under section 54 of the Income Tax Act. The exemption is the lower of the LTCG and the cost of the new house.

   Exemption = min(LTCG, cost of new house)

   = min(Rs. 15,82,787, Rs. 35,00,000)

   = Rs. 15,82,787

5. Finally, the taxable capital gains is the LTCG minus the exemption.

   Taxable Capital Gains = LTCG - Exemption

   = Rs. 15,82,787 - Rs. 15,82,787

   = Rs. 0

So, Ram does not have to pay any tax on his capital gains.