Cost of acquisition

Land A (FMV 10L) exchanged with Land B (FMV 11 L).

                                                      Land A                       Land B

Sale consideration                    11 L                                10 L

Less : COA                                  10 L                                 11 L

CG                                                  1 L                                  (1 L)

Note  : Rural agriculural land is not subjected to capital gain tax since not treated as an asset.

https://taxbykk.blogspot.com/

Thanks Kushal sir,

I would like to clarify you following calculation.

1)Value of property as per stamp duty valuation are--

Property A-Rs 550000
poperty B-3000000

2)FAIR MARKET VALUE Written by parties in exchange sale deed for valuation purpose and no consideration .
Property A-Rs 550000
poperty B-565000

3)what will be cost of acquisiton if property B subsequently sold to Rs. 2600000.period of holding is short term.


Thanks again in advance.

Rural agriculural land is not subjected to capital gain tax since not treated as capital asset

Dear Sumit sir ,

Sorry ,I wrongly quoted.  Property B is Urban land under muncipalty area.

Kushal sir,

Can I take the cost of acquisition Rs.30,00,000/- while selling to Rs 2600000/- in above transction for comptuation of capital gain.

for seller. Section 50C applies

                                          property A                          Prop B

Sale consideration           5,50,000                30,00,000

for buyer. Section 55 applies.

COA of property B for the buyer shall be 5,65,000 and not 30,00,000 

https://taxbykk.blogspot.com/

If property is inherited property and cost not known then how we will calculate capital gain.

get valuation report from govt authorized survayer as on 1st april 1980.