Capital gains

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2012 Sir, one of my client has sold his land on 4th april 2011, on which he is liable to pay capital gains tax, which he has been paying in installments as advance tax the 3rd and final installment will be paid on 15th March2012. pl confirm is it correct? because some one saying that he has to pay in one short

Further he has incurred a sum of Rs.5 lacs on vacating the premises sold, can it be taken for the calculation of cost of improvement or accuisition

Krishna Mohan

Krishna Mohan (Expert)

28 February 2012 Advance tax in installments is allowed even for capital gains. No need to pay at a time. Rs.5 lacs payment for vacating premises cannot be taken as cost of improvement or cost of acquisition.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 February 2012 Income tax on Capital gains can be discharged by paying advance tax on 15/9/2011,15/12/2011 and 15/03/2012. Cost of vacating tenancy can be treated as 'cost of improvement' by virtue of court decisions the latest,among others, is
Delhi High Court decision in CIT Vs. Eagle Theatres dated 21/12/2011.

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