Income tax – query
We are 4 brothers in the year 2000 bought an agriculture land of 5 Acres nearer to Hyderabad city and paid Rs. 5,00,000/- per acre and total consideration of Rs, 25,00,000/- and got registered by sub registrar at the valuation of Rs. 2,50,000/- per acre. And later we gave it to a person for lease for cultivation. After sometime the leased person occupied our land and troubling us by not paying lease rent and as well not vacating the land. In this scenario we approached a person who got good contacts with political and he himself wants to buy the land as it is for a consideration of per acre Rs. 1 crore and with a total consideration of Rs. 5 crores and he will settle the matter with the leased person. But now as per the sub registrar that land is not in agriculture status and their valuation is Rs, 4 Crore per acre and total official valuation is Rs. 20 crores in the status of residential category.
We entered into an Agreement of Sale with this buyer for Rs. 5 Crore for 5 Acres Land and later Sale Deed will be prepared for the same Rs. 5 Crores.
In this regard how much income tax amount we will have to pay towards Capital gains tax? Kindly clarify.
Thanking you Sir, Venkat Rao Hyderabad
CAclubindia
