capital gains
This query is : Resolved
mohan karandikar
(Querist)
12 May 2011
Dear sir/madam,
My mother purchased a plot of land for Rs. 3,600/- in 1969, and a small house of 225 sq. mtr.was constructed (after municipal approval) on this land.
On her demise in 2005, the title was transferred to my name. The value then was Rs. 1 cr. incl. house.
In 2008 Govt. of India issued a notification prohibiting any further developement including planting of trees etc. since the plot was within the restriction zone from the Indian Air Force boundary.
In 2011 the land & house was sold for Rs. 51 lacs. However the valuation for stamp duty was Rs. 1.9 cr. as per municipal zoning. Hence the sale deed was sent to Collector of Stamps for adjudication along with Govt. of India notification.
The valuation was then changed to Rs. 40 lacs. and stamp duty levied on Rs. 51 lacs.
Can any expert advise me as to my income tax liability and whether this is a case of capital gain or loss.
Thanks and regards.
My mother purchased a plot of land for Rs. 3,600/- in 1969, and a small house of 225 sq. mtr.was constructed (after municipal approval) on this land.
On her demise in 2005, the title was transferred to my name. The value then was Rs. 1 cr. incl. house.
In 2008 Govt. of India issued a notification prohibiting any further developement including planting of trees etc. since the plot was within the restriction zone from the Indian Air Force boundary.
In 2011 the land & house was sold for Rs. 51 lacs. However the valuation for stamp duty was Rs. 1.9 cr. as per municipal zoning. Hence the sale deed was sent to Collector of Stamps for adjudication along with Govt. of India notification.
The valuation was then changed to Rs. 40 lacs. and stamp duty levied on Rs. 51 lacs.
Can any expert advise me as to my income tax liability and whether this is a case of capital gain or loss.
Thanks and regards.
CA MANOJ GUPTA
(Expert)
13 May 2011
51 LAKHS WILL BE TAKEN AS SALE VALUE
U WILL HAVE TO FIND OUT FAIR VALUE (OR GET IT DONE BY AN APPROIVED VALUER) AS ON 01.04.1981
INDEX IT AND REDUCE IT FROM SALE VALUE(51LAKHS)
BALANCE WILL BE CG/CAPITAL LOSS
CA MANOJ GUPTA
JODHPUR
09828510543
U WILL HAVE TO FIND OUT FAIR VALUE (OR GET IT DONE BY AN APPROIVED VALUER) AS ON 01.04.1981
INDEX IT AND REDUCE IT FROM SALE VALUE(51LAKHS)
BALANCE WILL BE CG/CAPITAL LOSS
CA MANOJ GUPTA
JODHPUR
09828510543
mohan karandikar
(Querist)
16 May 2011
Thank you very much for your reply.
Wish you all the best.
Warm regards.
Wish you all the best.
Warm regards.
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