CAPITAL GAIN QUERY

Hai, if he do not have any idea about purchase then may i know how he arrived at his share of profit as Rs. 30,000/-

Dear SAN,

Ans to Q1.

As Dipesh said, U urself replied it. So FMV as on 01.04.1981 can be taken as COA

Ans. to Q2.

Visit Income Tax Office and just obtain a list of Govt. Valuers from the PRO (Public Relation officer) & then get the certificate of FMV from any of those Valuers after paying certain fee.

Ans to Q3. & Q4.

Sorry but I couldn't understand this question since Cost is unknown as yet then how you have computed "Profit"... I mean if I am not wrong 30,000 must be share in Sale Consideration and not in Profit.

First, Gain will be computed after ascertaing the FMV and only then the question of taxability or tax saving will arise. Since the Amount of Sale consideration  is 30,000 only so don't think there will be any taxable gain which one would feel like saving.(especially in the light of benefit of indexation)

Anywaz if at all there is any Gain, the same can be saved  in terms 54EC & 54F

Sorry Bhai SAN i can't help you in Income Tax as am completely out of touch from Income Tax provisions. So i can't misguide with my foolish reply.

Vaisa Fikar not---Amir and other experts hain na !!!

i agree with aamir bhai

Hello,

I agree with Amir, but some questions come to my mind.

Is the land already transfeered us 49(1) before as you already mentioned by his father before..

And since it is rural land, you can contact the mamlatdar and sarpanch for tht area  who will tell you the FMV of purchase and date of purchase.

Also will help to determine the FMV of land.
 They will charge some additional amount but will help you out regarding everything.

I had purchased a rural agricultural land a year ago and so i have idea about this things.

ya i agree with amir and dipesh

Dear Friend

As per your query 

1.) Yes he can assume the value of Property as on 01.04.1981 because as per rules Value be considered the original purchased value or value as on 01.04.1981 Whichever is HIGHER.   which u can ask from the Registrar of the Property.

2.)The Property has been sold by your friend now so he must be knowing the prop value.

3.) If his Income is below then or equal to 1,30,000 (excluding this profit) then his income is under non taxable slab as per rules of adjusting profit from LTCG.

Dear SAN.... !  Dipesh & Amir have completely solved ur query.. !

DEAL ALL THANKS A LOT FOR URS GREAT SUPPORT....

Originally posted by : ܔܢܜܔ ∂ιρєѕн♠♠♠
	Hi SAN, After going through this case, I have reached to the following conclusion. Hope it may be helpful to you. Answer 1: As stated in the given case the father of your friend is sure that the property is purchased before 1969. So he(Your friend) can assume that the property is purchased before 01.04.1981 and can take FMV on 01.04.1981. Answer 2: FMV is an estimate of the market value of the property, based on what a buyer would probably pay to the seller in the real estate market. Your friend can approach registered property valuers to determine FMV of the property. Answer 3: Here the Tax liability is on Rs. 30,000 received by your friend as a share of profit by his father u/s 49(1). As per the Act, income from impartiable estate is taxable in the hands of the holder of the estate. As given in this case your friend has received Rs. 30,000 as share of profit (i.e. income from property)  from sale of land and not the share from the sale consideration received by sale of property by his father. So the tax liability is on his father and he is not liable to pay tax on Rs. 30,000. Answer 4:  As given in answer 3, the son is not liable to pay tax on Rs. 30,000. Therefore the question of getting exemption under any other head of income does not arise.

 THANKS DEAR FOR UR QUICK REPLY......

Originally posted by : Amir
	Dear SAN, Ans to Q1. As Dipesh said, U urself replied it. So FMV as on 01.04.1981 can be taken as COA Ans. to Q2. Visit Income Tax Office and just obtain a list of Govt. Valuers from the PRO (Public Relation officer) & then get the certificate of FMV from any of those Valuers after paying certain fee. Ans to Q3. & Q4. Sorry but I couldn't understand this question since Cost is unknown as yet then how you have computed "Profit"... I mean if I am not wrong 30,000 must be share in Sale Consideration and not in Profit. First, Gain will be computed after ascertaing the FMV and only then the question of taxability or tax saving will arise. Since the Amount of Sale consideration  is 30,000 only so don't think there will be any taxable gain which one would feel like saving.(especially in the light of benefit of indexation) Anywaz if at all there is any Gain, the same can be saved  in terms 54EC & 54F

 DEAR AMIR BRO....EVEN I AM LITTLE BIT CONFUSE REGARD THAT... I WILL GET CONFIRM WITH HIM  (about cost of land)AND WILL GET U BACK....

Thank Once again...

Originally posted by : Ankur Garg
	Sorry Bhai SAN i can't help you in Income Tax as am completely out of touch from Income Tax provisions. So i can't misguide with my foolish reply. Vaisa Fikar not---Amir and other experts hain na !!!

 Its ok dear Ankur sir ...still u replied, its really  gr8 thing of u..

Thanks For ur reply sir....

Did you finally got the solution that 30000 is sales consideration or profit 

I too think that it should be sales consideration and not share in profit.