Agreement to sale capital assets was made on 15/03/2008. it was sold for rs. 50 laks, payment made through cheque. at the time of sale its guidline value was rs. 1 crore. its registry was done on 01/05/2014 and its guideline value was rs. 2 crore. At the time of agreement, it was rural agricultural land but now its urban agriculture land. Now, what will be its tax treatment?
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Capital gain
Replies (6)
If Agreement in made & sold on 15/03/2008 then, the capital gains will also arise in AY 2008-09.
capital gain should have arisen in 08-09 only. but from your query i can guess that you have not shown in 08-09 and you want to show it now.
As per sec.50(c), in the hands of seller Rs. 1cr will be taken as sale price (sdv ) is higher..and accordingly COA to the seller will be deducted.
| Originally posted by : Tribhuvan Aditya Singh | ||
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capital gain should have arisen in 08-09 only. but from your query i can guess that you have not shown in 08-09 and you want to show it now. |  |
at the time of sale, possession was given to buyer & now we are doing registry. Can u please guide me about its tax treatment.
have u shown the income arising thereon in 2008-09?
you will have to calculate CG by taking sales consideration at 1 crore and reducing it with indexed COA. but since it was rural agricultural land at the time of agreement. so CG on sale of such land will be exempt. also as the sales consideration is 50 lakhs so the buyer will be required to deduct tds @ 1% u/s 194IA
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