05 September 2013
One of my friend sold land which was used for agriculture at notified area(within 8 km from city limit). The land was inherited from their father since 1996 and co owned by eight of them. Are they liable to capital gains?.They do not wish to reinvest any amount so received. Will they have to be assessed as AOP or individually? If so what would be the status and rate of tax applicable to them.
18 October 2013
If the land is compulsorily acquired by government or any govrn. authority capital gain is exempted u/s.10(37). If it is not so,it is taxable according to share of each co-owners if shares of each co-owner is specified, otherwise it may be taxable equally among each co-owner. Thanking you. 09409552320
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