capital gain

This query is : Resolved

rajni ASHANI (Querist)
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14 January 2011 A doctor friend of mine has asked for advice. His grandfather owned
agricultural land just outside Baroda. The grandfather died many years ago
and left the land to his 2 sons. My friend's father is in India but his
uncle is in UK.

The proceeds are substantial because the land is going to be used for a
business/shopping park.

I have found that sale of agricultural land in India does not attract any
tax. But is that still the case if the land use has changed or is going to
change?

If the profit on sale of land will attract tax, how is this calculated? Are
there any reliefs/deductions available? In the UK we get tax free allowance
on capital gains realised of £10,100 and the balance is then taxed at 18%.

Also if the profit is taxable in India is there anything you can do to
reduce the tax bill? For example can the title to land be shared betweeen
other family members before the actual sale?

Guest

Guest (Expert)

14 January 2011 Clarify the distance of land from the Municipal limits of Baroda ?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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14 January 2011 in this case there are les chances that 7you will exeption of agriculture land though you can do it through some unsocial means...

if we come to tax aspect as the amount is huge better to consult a expert in valuatin field..

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