- Hi. I am in the process of selling a residential land plot which has no construction on it.
- I have held the property for more than 3 years and thus would attract tax under long term Capital Gain on profit.
- The selling price is much below the government declared stamp duty value and the gap is more than 10%.
- I intend to buy an agricultural land plot and construct a residential building on it.
My questions are as under:
- For the purpose of calculation of capital gain, what would be considered as selling price? Actual selling price or the stamp duty value price?
- Would the exemption be claimed under section 54 or 54F as there is no physical structure on the said land?
- Will the cost of acquisition of new land plot be considered for showing the utilisation of capital gain/sale proceeds?
- As the registration and other fee are less in case of females, can I buy the new plot in the name of my mother/sister?
- Is there any limitations on the size or value of new plot purchased?
- What proof need to be provided to the tax department to show the construction of new residential house and cost incurred in its construction.
- Do I need to invest on the capital gain value or the whole sale proceeds value to avail full exemption?
- Since the actual sale value is lesser than the government declared stamp duty value, what amount needs to be reinvested in order to claim the full exemption?
CAclubindia
