LTCG tax for transfer of lease hold land

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Will I get answer for a question on long term capital gain tax for sale of land in this forum?

Replies (3)

Yes, Where is the question?

A piece of land measuring about 4 Kottah was purchased in FY 2003-04 from Siliguri-Jalpaiguri development authority under Govt of West Bengal at a price of Rs. X only.

It is a lease hold land. Development authority is the owner.

No construction was made and the land is lying vacant ever since.

Now, a business man  of that area is showing interest to buy the land. It will be transfer of lease with permission of the development authority who will charge a fee of Rs.1 Lakh per Kottah for permission.

The prospective buyer has offered Rs. Y>>X

What will be LTCG after taking into account indexation?

Let me know the formula to be applied.

The calculation will be in similar fashion, as in any other long-term assets sold.

Here the asset sold will be 'Rights in a Property.' 


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