Capital gain on sale of urban agricultural land

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Ashok (Querist)
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27 December 2013 WE REQUIRED YOUR OPINION IN ONE CASE,
ONE OF MY CLIENT HAVING URBAN AGRICULTURE LAND AND HE PURCHASED THE SAME LAND IN THE YEAR OF 1994-95. AND IN THE YEAR OF 2004-05 HE TRANSFER AROUND 50% LAND TO HIS SON WITHOUT CONSIDERATION AND THE REMAINING 50% LAND IS TRANSFER IN THE YEAR OF 2008-09. NOW THE LAND IS IN THE HAND OF SON.
NOW SON WAS TRANSFERRED 50% LAND IN HIS WIFE'S NAME IN THE YEAR 2012-13 WITHOUT CONSIDERATION.
IN THE YEAR 2013-14, HE WANT TO SALE THE ENTIRE LAND.

SO, MY QUESTION IS THAT,
1. HOW TO CALCULATE CAPITAL GAIN IN THE HAND OF SON, AND FOR INDEXATION WHICH AMOUNT SHOULD BE TAKEN, COST OF ACQUISITION OR FMV ON THE DATE OF TRANSFER.
2. MY CLIENT HAVING ONE HOUSE CAN HE CLAIMED DEDUCTION IF HE PURCHASE ANOTHER HOUSE U/S 54F.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 December 2013 Since the original purchase was prior to 31.3.1981 you have to get the value of 1981 and then calculate the index cost and accordingly you have calculate the capital gains.

In this case the provisions of Section 64 will attract as the son transferred to his wife 50% share without any consideration. The capital gain for entire land will be taxed in the hands of the son only.

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