Capital gain

As land (Long term asset being assumed as urban agricultural land) acquired based on a Government scheme, which has waived the cost of the land, which might be mentioned in the settlement deed or transfer deed of the Government. The cost of the land is that of the cost mentioned in the deed,hence same has to be considered as cost after indexation. Net capital gain will be taxed in the hands of the individual (i.e owner of the land). After making the payment of capital gain tax , the individual can distribute the money to any person. To minimise the tax, individual can reinvest the capital gain money in accordance with the section 54B, 54EC & 54F.