Capital gain on purchased of land below stamp duty

Tax queries 248 views 4 replies

Land Purchased on 15 Nov 2017 and registered as per ROR as Agricultural but proposed while registration as Bastu.
Land Stamp Duty Value is 16 lakh at the time of registration and stamp duty fees and registration charged paid on stamp duty value of 16 lakh i.e Approximately Rs 115000. But Land Purchased and mentioned in sale deed amounting Rs 5.2 Lakh. As a Purchaser of land, i want to know that :

1. Will i taxable ??? If yes than how much ??

2. If i am taxable than what will be my cost of acqusition at the time of selling the land if required in future ? will it be Rs 5.2 +1.2 lakh or Rs 16 +1.2 lakh ?

3. For Income tax purpose will my land consider as Bastu or Agricultural land if it is outside the municipality limit ?

Replies (4)
cost of acquisition will be 5.2
1. yes taxable... 16 - 5.2 = 11.58, as income from other sources under section 56(2)(x)(b)
2. cost of acquisition= 16 + 1.12 = 17.12
how you calculated cost of acquisition
when 16 lakhs is assessed in assessee's hand then it has to be taken as actual cost of acquisition and the charges incurred in purchase...
correct me if iam wrong


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