Capital gains

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2016 Agricultural land was purchased by A on April 9, 1997 for Rs. 78836 (including registration and stamp duty. On January 9, 2014, certain disputes with respect to the said land were settled for which expense of Rs.339740 was incurred. on November 2, 2015, entire land was sold for Rs. 90 lakhs. Sale consideration was divided into 2 parts: Owner was paid Rs. 60 lakhs and executors and administrators were paid Rs. 30 lakhs. For calculation of capital gains for AY 16-17, should consideration be taken as Rs. 90 lakhs or Rs. 60 lakhs and treat amount paid to administrators as part of expense directly attributable to the sale transaction.New property (residential house) was purchased on November 20, 2015 for 66,66,550. if entire consideration is consideration of Rs. 90 lakhs is considered, then capital gains after considering indexed cost woks out to Rs.83,29,467 resulting in tax liability of 20.6% whereas, if Rs. 30 lakhs is treated as expense or not a part of consideration, then capital gains would be Rs. 53,29,467 resulting in no tax. All figures and dates are at actuals
Thanks in advance

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2016 Further to the query, in this transaction 3 parties are involved. 1st is the seller , 2nd purchaser and third consenting party. Consideration received of Rs. 90 lakhs is divided into 2 parts viz. Rs. 60 lakhs to the owner and Rs. 30 lakhs to the consenting party as per pre determined payment schedule. Agreement specifies separate amounts payable to each one of the parties. Should the owner claim capital gains exemption based on consideration of Rs. 60 lakhs or of Rs. 90 lakhs. Fact of bifurcation is indicated in the agreement. Please advise.