Garden land

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Rashmi (Querist)

04 September 2012 Dear Expert,

One of my Client have following query -

"I have a land of 4 acre and 10 gunta. it is garden land just want to know whether it comes under agriculture land. and now i am intent to sell this land. so what will be my capital gain. details are below ;

1. land is been purchased on feb 2004 - cost of acquisition is Rs. 10.8o lacs and 1 lac stamp duty & registration charges.
2. Between 2004-2012 i have spent 50 lacs on develepment of this land like one shed, toilet and others. Do i need to segregate the 50 lacs as it is being spent in different years.
3. As Per govt rate its value is coming around 1.92cr. but market rate is around 2.55cr.
4. Presently land is joint with BBMP.
5. Land in my Wife's name Which is funded by me at time of purchases.

Thanks in Advance.

Amol S Joglekar

Amol S Joglekar (Expert)

04 September 2012 1. Benami transaction is not recognised by Income Tax. So the gain will go the person having the ownership. Your wife in this case. 2. The 7/12 extract will specify the nature of land.... agriculture or otherwise. Whether you use it as such may not make a considerable difference. 3. Agricultural land is CAPITAL ASSET provided the 2 conditions (either...or ) are satisfied... population 10000 or more OR 8 kms away from local limit of municipality etc. 4. sec. 50C will definitely come into play. 5. You can add the cost of developement as IMPROVEMENT

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