Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2012 Dear sir,
My client had purchased a plot of land (Plot No. 43A) on 10/06/2005. Plot area was 26.75 Sqr.mtr and Registered value was rs. 32000 (Including Stamp duty and registration fees of Rs. 2000).
In 11/07/2011, he had purchased another plot connected to previous plot (Plot No. 43 B).Plot area was 93.84 sqr mtr and registered value was Rs. 1240000(Including Stamp duty and registration fees of Rs. 240000).
Now he had applied in area development authority. On his application, area development authority had converted them into single plot by its order. Now total land area of the plot is 120.59 sqr mtrs.
Now he had applied in city survey office to divide a single plot into 2 plots of land having 60.295 sqr mtr land area for each. on the basis of his application his plot were converted in 2 subplots 43C-1 and 43C-2 having plot area of 60.295 sqr mtrs each.
Now he has sold plot no. 43C-1 having land area of 60.295 sqr mtrs in dec 7, 2012 for a consideration of Rs. 2000000.
It would be long term capital gain or short term..? And also help to calculate amount of capital gain..

Please help me in the above problem..

Amol S Joglekar

Amol S Joglekar (Expert)
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17 December 2012 01. Land division is not so simple my dear. Please tell us what the papers are speaking. Drawing some lines on some piece of paper does not serve the purpose.
02. By the way plot is measure in square meter and not only mtr.
03. To continue with your fancy.... find out the area he/she sold out of erstwhile 16 and 40 and accordingly the period of holding is to be computed.

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2012 Dear sir,
My client had purchased a plot of land (Plot No. 43A) on 10/06/2005. Plot area was 26.75 Sqr.mtr and Registered value was rs. 32000 (Including Stamp duty and registration fees of Rs. 2000).

In 11/07/2011, he had purchased another plot connected to previous plot (Plot No. 43 B).Plot area was 93.84 sqr mtr and registered value was Rs. 1240000(Including Stamp duty and registration fees of Rs. 240000).

Now he had applied in area development authority. On his application, area development authority had converted them into single plot by its order. Now total land area of the plot is 120.59 sqr mtrs.

Now he had applied in city survey office to divide a single plot into 2 plots of land having 60.295 sqr mtr land area for each. on the basis of his application his plot were converted in 2 subplots 43C-1 and 43C-2 having plot area of 60.295 sqr mtrs each.

Now he has sold plot no. 43C-1 having land area of 60.295 sqr mtrs in dec 7, 2012 for a consideration of Rs. 2000000.

It would be long term capital gain or short term..?
And also help to calculate amount of capital gain..
Please help me in the above problem..

Amol S Joglekar

Amol S Joglekar (Expert)
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18 December 2012 Working note 60.295-26.75 = 33.545

Out of Sale of 60.295 square meters
26.75 square meters is long term.
33.545 square meters is short term.

The rate per square meter can be worked out and accordingly proportionate working should be done.

20,00,000 / 60.295 = 33170.25 (This is with the understanding that plot no.43C1 occupies the erstwhile area of 43A)

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