Long term capital gain effect
This query is : Resolved
19 November 2013
Please help, its urgent
The assessee have a land which he has received due to death of his father. The assessee's father had the land, and after his death, the land has been transferred to the assessee. The assessee father had acquired the land long ago, maybe 50 years back. Now the assessee wants to sell the land, what will be capital gain calculation on this. Can anyone help me? The cost of the land is very minimal at the time of purchase. Will it be necessary to make land valuation and then calculate the capital gain, or else what should the assessee do? Kindly suggest. Thank you
The assessee have a land which he has received due to death of his father. The assessee's father had the land, and after his death, the land has been transferred to the assessee. The assessee father had acquired the land long ago, maybe 50 years back. Now the assessee wants to sell the land, what will be capital gain calculation on this. Can anyone help me? The cost of the land is very minimal at the time of purchase. Will it be necessary to make land valuation and then calculate the capital gain, or else what should the assessee do? Kindly suggest. Thank you
SANTOSH SAGAR K
(Expert)
19 November 2013
First, please see if the land is agricultural or not. If so, then not taxable
If non-agricultural land, then for the purpose of capital gains:
Cost: Fair value as at 1-4-1981 is to be taken.
Indexation benefit: Indexation benefit is available from 1981 to the year of sale.
However, this issue is debatable.
This asset is considered a Long term capital asset and any capital gains is taxable @ 20%.
If non-agricultural land, then for the purpose of capital gains:
Cost: Fair value as at 1-4-1981 is to be taken.
Indexation benefit: Indexation benefit is available from 1981 to the year of sale.
However, this issue is debatable.
This asset is considered a Long term capital asset and any capital gains is taxable @ 20%.
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