25 October 2009
An individual inherited a piece of land after his mother’s death in May 2005. The said land was acquired by his mother in March 1975 for Rs. 35,000/-. Subsequently, the individual transferred the development rights of the land to a builder for a monetary consideration.
Is the said consideration chargeable to tax under LTCG? If yes, what will be the cost of acquisition? Whether purchase cost of the land can be taken as cost of acquisition? Can the individual substitute FMV of the LAND as on 01/04/1981 as the cost of acquisition?
25 October 2009
Individual has to get a certificate from the valuer as to the value of Land as on 01.04.1981. With tat as the base, he may claim it as the cost of Acqui.
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