Short term capital gain

This query is : Resolved

gurjeet singh (Querist)
Follow

28 July 2012 An indvidual buy a agriculture lad with in mc limit registered amount is 10 lakh but he pay rs 30 lacs.
after one month
now the land is compulsary acquire by the govt and the registered value is 42 lac
and all the payment received by cheque
my question is that the capital gain on it is tax free / if no , than how can we save short term capital gain

CA Rahul Jain

CA Rahul Jain (Expert)
Follow

28 July 2012 Sec 10(37) specifically exempts such income from capital gain.

No tax payable.

gurjeet singh

gurjeet singh (Querist)
Follow

30 July 2012 thanks for replay
the main problem is the purchased by assasee may 2012, and acquire by govt in june 2012.

but in section 10(37) the land was used by assasee from last two year as agriculture land . but assase purchase it before one month.

plz clear

CA Rahul Jain

CA Rahul Jain (Expert)
Follow

30 July 2012 Correct. If the land was not used for agricultural purposes for the last 2 years by the assessee or his parent, Sec 10(37) won't apply. Thus the above transaction squarely falls under the tax net under the head Short Term Capital Gain.

If the assessee has loss under any other head, it can be set-off with the capital gain.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

rajkumar yadav

K.S. ANANTHARAJAN

CA. Urmila Mahalwal

Ravikumar

prashant

Subscribe Now

Short term capital gain

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA