Capital Gain Tax on Land

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Bhargav Thakkar (Querist)

28 October 2016 Dear Sir, My client has purchased agriculture Land in 2008, after that he has converted it in Non Agriculture in year 2010. Now in 2016 he has sold the said land. Hence the queries are : 1. Is liable for capital Gain tax? 2. If yes, then period of holding calculated from which year? 3. Is indexaxtion applied from the 2008? 4. And all the land developmwnt expenses are allowed as deduction? plz revert ASAP.

Amol S Joglekar

Amol S Joglekar (Expert)

28 October 2016 01. Yes. It is capital asset and hence subject to capital gain tax.
02. Period of holding is from 2008...the date on which the asset was acquired.
03. Indexation is applied from 2008.
04. The expenses in connection with the transfer can be allowed. The developement expenses....please specify, so that the answer can be given

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Bhargav Thakkar

Bhargav Thakkar (Querist)

28 October 2016 Thank you for such nice revert sir. Expenses Like : Land Surfing/leveling Built up on land premium paid for land etc.

Amol S Joglekar

Amol S Joglekar (Expert)

28 October 2016 land surfing/levelling is allowed as developement. It can be added to cost.
Land premium? What is it paid for? The purpose, I mean.

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