I had an agriculture land received as ancestral property from my father. The land belonged to my Father since 1940. The Land has been allocated to me as partition of the property in the family in 1969.
I recently sold this land . Let me know followings.
1) How the capital gain tax is calculated. Indexation available from 1981
2) To avoid paying CG tax, can I purchase a residential / commercial property ?
Since you got the land before 1981, the FMV of the land as on 1.4.81 is to be taken for indexation. To get exemption you have to purchase or construct a residential property only. No exemption is available for commercial property. Further if your land is beyond 8 kms from the municipal limits then there will be no capital gains for agri lands
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