capital gain

Dear Pradnya,

U don't have to sell it in a different agreement but for practical convinence it would be great if u can make 2 different agreements for land & for building.

For the purposes of capital gain u have to segrregate the total sale price in two parts..

1) First belonging to Land since it is a LTCA, U can save tax by investing u/s 54EC(i:ein govt. notified bonds) &/or 54F(buying a new house)

2) Second belonging to Structure since it is a STCA, No scheme for tax saving is available...

S completely agree with Amir..

Land and Building can be treated separately.....Land - LTCA .... Building - STCA....

Land - 54 EC and 54 F to save tax....

Building - STCA no chance for tax saving....

Hi frnds..

is it not possible to treat the building as an addition / improvement to the land...

Accordingly, the full gains will be long term capital gains computed as under-

a)Full Value of Consideration                       250 lacs

b)Less: Indexed Cost of Acquisition            (Indexed value of 3 lacs)

c)Less: Indexed Cost of addition/improvement    150 lacs

Long Term Capital Gains                                   (a-b-c)

Mr.Deepak Kumar

i think building constructed on Land cannot be treated as Improvement / addition....