Tax and Business Consultant
11616 Points
Posted on 02 August 2020
As mentioned by you, you sold Urban agriculture land for Rs.12 lakhs
You can save tax by investing the capital gain in others agriculture land, but if you are not purchasing any agriculture land capital gain arise on sale is taxable.
Calculation of capital gain:
As this property is old property, You have to take Value of Property as on 01.04.2001 as cost of Acquisition.
Deduct that Cost of acquisition after indexation from sale value (i.e 12 lakhs ) to arrived at Capital Gain.
E.g. If value of land as on 01.04.2001 is 3 lakhs
than indexed cost of Acquisition comes=3,00,000/100*289=8,67,000
and Gain = 12,00,000-867000=333000
taxable
but if you invest that 3,33,000in other agricultural land , than total Gain is exempt.