Please provide me your immediate reply to the following tax queries:
(a) My mother aged 55 years has a vacant land that was bought in 2010 for 70,000. Today it was sold for 3,15,000. What was her taxable income? What is the available tax planning for the above to reduce the tax?
(b) My father (Aged 60+) purchased a vacant land in 2013 for Rs.14.30 Lacs (Rs.6,500 per Sq.Ft X 220 Sq.Ft). Today, he is willing to exchange the land for another land Rs.26 Lacs (Rs.15,000 X 175 Sq.Ft). The balance amount will be paid in through loan. The registrations of these lands for both parties will be due after April. Please explain:
1. Will there be capital gain tax? If yes, how much.
2. Which assessment year, the capital gain income (if any) will be taxable.
3. Whether the interest and principal on loan can be claimed as deduction.
4. What is the available tax planning for the above to reduce the tax.
Based on your advice, i would suggest them.
Thanks in advance.