Capital gain

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sahil mahajan (Querist)
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21 February 2013 If a Land is purchased in 2007 then construction took place on land on 2011 & land is sold in 2012. Is Constructcion on Land is improvement or it becomes residential house.Will it attracts Long or short term capital gain in both cases i.e. residential house or improvement.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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21 February 2013 Construction of residential house doesn't consider as improvement it is also asset. For land portion consider Long-term capital gain and for construction portion consider short-term capital gain.

OM SAI SRI SAI JAI JAI SAI

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 February 2013 As per the decision of Rajasthan High court reported in (1993) 201 ITR 442 the gain arising on sale of plot shall be long term capital gain whereas the gain arising on sale of building shall be short term capital gain.

sahil mahajan

sahil mahajan (Querist)
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22 February 2013 Construction of land is part of Land. How we can separate the sale price.

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