Capital gain

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Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2013 I have purchased a land on 13/05/2012 at Rs. 13,00,000/- and market value is 22,00,000/-. And same land is sold on 12/03/2013 at Rs. 13,50,000/- and market value is 22,50,000/-. Now my query is -

1) How much tax have to be paid?
2) Is there any provision in I.T Act to get benefit in tax amount?
3) Is tax is exempt if I had invested in another land?

Please solve my query as early as possible.
Thanx in Advance.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

31 December 2013 Market value is not relevant here.
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Stamp Duty valuation is important.
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Please state that whether the Stamp duty paid by you is on 13.00 lac or 22.00 lac ?
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Similarly- state the facts when the land was sold.
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2) This is a case of short term capital gain so no benefits or exemptions are available.
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Querist : Anonymous

Querist : Anonymous (Querist)

03 January 2014 Stamp duty is paid on Rs.22.00 Lac. And when the land is sold stamp duty is paid on Rs.22.50 Lac. Parasji please calculate how much tax should be paid.
Thanx for ur response.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

03 January 2014 As per the provisions of IT Act, the purchase consideration wil be taken as 1300000 and the sales consideration will be taken as 2250000. STCG =950000.
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Add STCG with your other income and compute tax on the basis of normal rate (Slab rate).
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