Capital gain query

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2012 Sir, this year I purchased an Agricultural land (Situated within 8 KM of Muncipal area) on 23rd August, 2012 in Rs. 10000000 (One Crore) paid by cheque. I purchased the land by taking loan from my husband’s firm.

Now I want to sell my other agricultural land (Situated within 8 KM of Muncipal area) which was acquired in the year 1968. But I am going to sell the land via plotting (i.e. Residential purpose) in 2012 to save my capital gain. I will approximately get a bit more than 1 crore.

I have purchased the land before selling a land.

Will I get exemption from capital gain tax in this financial year? Where can I find books & documents relating that?

Details-

Purchase New land (August 2012) – Rs. 10000000 (One Crore)

Sales of 1968 Land via plotting 2012 (after November, 2012) – Rs. 13000000 (One Crore thirty lac) approximately

Difference = 3000000 (Thirty Lac)

I think that I have to pay the capital gain if the difference amount is more than the indexed cost of land (1968) + investment on that land (1968).

Please help & Advice.

Thanking you

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

18 November 2012 The new can be purchased one year eariler to the date of sale or within 2 years after sale. In your case since the new asset has been acquired within the allowable one year you can claim deduction. Further instead of paying tax you can opt for bonds for the differential amount and your calculation of capital gain is correct.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2012 Thank you sir,

Sir, One more thing. I am not sure if the land (1968) is capital asset or not. The land is situated 2 KM after Muncipal area.

The land is being used for agricultural purpose till now.

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