Capital gain treatment in case of sale of land

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CA Dron Bharadwaj (Querist)
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07 August 2012 PURCHASE:
LAND & BUILDING was purchased at Rs.20,00,000/-.
On the purchase date, the value of LAND (as per circle rate in that area) was Rs.15,00,000/-.

SALE:
The BUILDING was demolished by the owner and the scrap was sold for Rs.1,00,000/-.
Later on the LAND was sold for Rs.25,00,000/-.

Kindly let me have expert comments on treatment of this transaction under head capital gains.

Please provide the concerned law or case (if any).

Amol S Joglekar

Amol S Joglekar (Expert)
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07 August 2012 The definition also covers the cases of EXTINGUISHMENT. The building will attract capital LOSS. The working of land is easier with the help of circle value and indexation if any.

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