Capital gaon on agricultural land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2012 THE ASSESSE HAS SOLD URBAN AGRICULTURAL LAND ON 20/02/2012 FOR Rs.50.00 LACS. THE STAMP VALUATION OF THE SAID LAND IS Rs.1.15 CRORE. THE ASSESSEE HAS INVESTED Rs.40.50 LACS FOR CONSTRUCTION OF RESIDENTIAL HOUSE PROPERTY (RHP) BEFOR 31/08/2012. THE FAIR MARKET VALUE OF THE SAID PROPERTY AS ON 01/04/1981 WAS Rs.4.00 LACS. AS PER INDEX COST CAPITAL IS Rs.83.60 LACS. WHAT WILL BE EXEMPTION U/S.54F RS.40.50LACS OR AMOUNT INVESTED FOR RHP x CAPITAL GAIN / NET CONSIDERATION i.e. 40,50,000 x 83,60,000 / 50,00,000 = 67,71,600.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 October 2012 1. The sale consideration shall be Rs. 1.15 crore by virtue of Section 50C.
Capital gain shall be computed accordingly.

2. Exemption u/s 54F is calculated as under:

Amount Invested * Capital Gain/ Net Sale Consideration.

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