Capital gains

Ravi Dasija (C.A. ) (273 Points)

30 January 2013  

Dear Seniors/ Friends

 

One of our client had purchased  a rural agricultural land in 1985 and a few years after that he had built a farm house on it, now in December 2012 he has sold the Land and the farm house and has received a lumpsum consideration for the same.

 

My question is will he have to pay tax on sale of this land and the farm house, will he have to pay the tax on the full amount of gains or the portion of land will be exempted, if yes then how will we bifurcate the consideration received for the sale.

 

Thanks in Advance

 

Warm Regards

Ravi Dasija