Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2012 what will be the capital gain on Agriculture land bought in 1985 for Rs. 66000/- if the sale consideration today is Rs. 1.5 crores.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 August 2012 It depends on the location of land .
If is a "Rural" Agriculture land(RAL), no capital Gain will arise as RAL is not treated as a capital asset.
.
If the land is in urban area, or within the notified limit (max. 8kms) of a municipality,

Capital Gain will be calculated as under -

1. Sales Consideration 1,50,00,000
2. Less: Indexed Cost of Acquisition
60000* CII of FY 2012-13 (Awaited)/CIIOf year of purchase(1985-86) .
Roughly 60000*825(assumed)/ 133 =372180
3. So Capital Gain will be 1,46,27,820.
.

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