Computation of long term cap gains on land

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VINAY KALA (Querist)
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24 January 2015 dear sir,

1. i was allotted a plot by HUDA gurgaon on march 1995 at a total cost of rs 6.40 lacs payable in seven yearly instalments of rs , say one lac per year from 1995 to 2001, which amount was paid all in time.

2. it was a stipulated condition of the allotment letter that till then uundetermined farmers compensation was payable by me.

3. the farmers compensation of rs 5 lacs was demanded in march 2001 and was paid.

my query is:-

1. does indexation for sale of land will be on the stiplated total price of rs 6.40 lacs from 1995 or indexed as and when instalments are paid.

i am informed that since the agreement was made in 1995 that would be the deemed date of purchase , amount being rs 6.40 lacs?.

2 will farmers compensation of rs 5 lacs paid in 2001 be indexed from that date or from 1995?.

i propose to sell the land this fiscal

thanking you

vinay kala jan 2,15

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Expert)
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24 January 2015 The Allotment date is the Date of Purchase for Indexing Also and Farmers compensation would be capitalized as and when paid by Allotee.

VINAY KALA

VINAY KALA (Querist)
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24 January 2015 thank you mr singla for the immediate response.

vinay kala

jan 24,15

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Expert)
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25 January 2015 Mr. Vinay you are most welcome to raise queries.

VINAY KALA

VINAY KALA (Querist)
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19 February 2015 dear nr singla,

kindly aquy elaborate what is meant by capitalisation of farmers compensation.

just some input sir for clarity

under a clause of the allotment letter dt 2.3.1995 it was stipulated that farmers compensation would be payable.

it was paid on 2000.

my quiries are

1. would farmers compensation be indexed too from the date of allotment letter as there was a mention of it but the amount was dependent on a future judgement of the nigh court

or it would be indexed from date of payment till date of sale?.

2. is there any way by which l t cap gains from sale of land be investment in an apartment and there is some rebate on capital gain.

i am aware of govt bonds which i do not want to lock funds in.

i would rather pay lg cg
regards

vinay kala

feb 19,15

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Expert)
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20 February 2015 1.Compensation by Govt. is always indexed from the Paid Year.
2. You would be relived from CG after sale in case you make further Investment in Residential Prop.

Is there any other query

VINAY KALA

VINAY KALA (Querist)
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20 February 2015 dear mr singla

thanks sir

i am satisfied

vinay kala

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