Capital gain

Basavaraj (Associate) (147 Points)

11 September 2014  

Please answer this ASAP.

Suppose I have purchased a land in 1990 for Rs.50000/- and in 1995 I entered into an agreement for sale which is not sold and I forfeited the sum of Rs 100000/-. Now in the year 2014 I'm selling the same land for Rs 3Crores .

What is the Tax liability in the above incidence .

We understand that as per Sec 51 the forfeiture amount must be deducted from the COA which further leads to the negative balance. So guide us with the computation.

 

Thank You.

Awaiting your response.