Dear Sir
My Father had purchased a residential plot in 2008 for 4 lacs in Ajmer (Rajasthan) with an aim to build a house over it after retirement. He got retired in Dec-2012 and depending upon the retirement proceeds he decided to sale the old plot and purchase a new one. He did the same in last year i.e. Oct-2013. He purchased a new plot in Oct-2013 for 12 Lacs and sold the old one in Feb-2014. Both the transactions were done in FY 2013-14. The details are:
Old plot purchase date & value - 4 lacs and Dec-2008
Old plot sell date & value - 14 lacs and Feb-2014
New plot purchase date & value - 12 lacs and Oct-2013
The earlier plot was sold after the purchase of new one.
I request the esteemed members to kindly indicate the implied tax liability & method of addressing the same.
Thanks vey much
Dinesh
CAclubindia
