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Capital gain

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(Querist)
11 June 2012 One of my client is an agriculturist. The Ag. land owns is within 8 kms of city. The Actual market sale price of the land is Rs. 60 lacs per acres at which it is being sold. However value as per collector's guidelines (on which registration duty is to paid)is Rs 100 lacs per acres. Would you please tell me what amount is to invested for purchase of new agriculture land in this case ?
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CA V.K. JAIN
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
11 June 2012 The amount to be invested is equal to the capital gains.

Sale consideration shall be Rs. 100 lakhs as per Section 50C.

Reduce the cost/indexed cost of acquisition from Rs. 100 lakhs and arrive at the capital gain.

This amount is required to be invested in agricultural land to avail exemption u/s 54B.
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vinod kumar jain

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vinod kumar jain (Querist)
11 June 2012 Thank you for your response. Indexed cost comes to very small approx. less than 2 lacs even after taking value of 1.4.1981. Thus, Capital Gain comes much more than the actual consideration is being received. V request U to respond. Regards CA V K Jain
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vinod kumar jain

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vinod kumar jain (Querist)
11 June 2012 Thank you for your response. Indexed cost comes to very small approx. less than 2 lacs even after taking value of 1.4.1981. Thus, Capital Gain comes much more than the actual consideration is being received. V request U to respond. Regards CA V K Jain
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
13 June 2012 The amount to be invested is the net capital gain.
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