09 July 2011
My Client has purchased a Vacant Land on 25/04/2007 for Rs 5.00 lakshs. He sold the said vacant land on 02/03/2011 for Rs 6.50 lakhs. The Profit on Sale is Long Term Capital Gain or Short Term Capital Gain for the Assessment Year 2011-12. Can he compute indexed cost of acquisition in case of LTCG.
09 July 2011
If the land referred to is a 'capital asset' as defined in section 2(14) of the Income tax Act,1961, then gain is LTCG and can also avail indexation benefit.
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