Capital gain treatment in case of sale of land
This query is : Resolved
CA Dron Bharadwaj
(Querist)
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).
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
(Expert)
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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