Capital gain tax

16 May 2019
Dear Sir,

One of my client has purchase a land on 15/06/2013 and constructed a residential property on that land on 30/09/2017 and the same was sold out on 08/05/2018.

Now, the question is that under which capital gain head it taxed, Short Term or Long Term? In the document there is no any specification regarding the Land Cost and Construction Cost.

In my opinion, in the above case, both the capital gain attracted and Land Value Taxed by Long Term and Construction Value taxed by Short Term. And the Sale value considered by local Stamp Authority.

Am I right? please guide

B.Chackrapani Warrier (Expert)
16 May 2019

CIT Vs. Dr. D.L Ramachandra Rao (1999) 236 ITR 51 (Mad) may be referred to.

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