my father bought a land of 1120 sqyds he bought it in parts i.e in 1986 he baught 43sqyds later in 1993 145sqyrds like the same he bought till 2003 totally there were 19 deeds all adding up to 1120sqyds,he gifted it to me and my brother in the form of a registered deed of a value of 24700000/- dated as 27-08-2010 later we both sold the property after a year i.e08-08-2011 for a value of the same 24700000/-.......my question is.....1)is it a ltcg or stcg ?how much capital gains do we have to pay? 2)the dates of the sale deeds my father bought (i.e 1986,1993......till 2003) will be cosidered for indexation or just the date( i.e 27-08-2010)which he transfered to us will be taken for indexation?.3) in which fiscal year and month should we pay capital gains?..4)we made a fixed deposit of 90lacs in my father"s name and 25 lacs in my name and 25lacs in my bros name and 90 lacs in my mothers name later we withdraw my mothers fd and invested in deutche fixed term plan mutual fund for 3yrs lockin period.is there any thing wrong what we did?please help me with what i should do now.
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Please help with capital gains?
Replies (4)
First and foremost, you need to specify if it was an "agricultural land" in rural india or not as per section 2(14)? If it was an "agricultural land" then you are saved from capital gains taxes as it is exempt. However presuming that it is not an agricultural land, answer to your queries are- (1) As per section 2(42A), It is LTCG as in cases of gifts, for determining the nature of capital gains period of holding of the previous owner (i.e your father) shall also be considered. (2) Capital Gains in this case cannot be computed for the entire land in lump sum. Capital Gain will have to be computed seperately for each of the 19deeds considering their respective indexed cost of acquisitions. (3) Yes the date of acquisitions of lands by your father will be considered for indexation. (4) This capital gain arose to you and your brother in the previous year 2011-12 and you both had to pay the capital gains taxes in Assessment Year 2012-13 before filling of returns. As the time limit for filling return has lapsed, and if you have not yet filled the return then you must file belated return declaring the above capital gains.
Yes, in my opinion, there has been a mistake in tax planning. You could have saved some amount of capital gains taxes u/s 54EC by buying Bonds of NHAI or REC but it was to be bought within 6months of sale of the said land. Now this exemption cannot be claimed.
However, as i mentioned at the very begining that if the land in question qualifies the definition of the "Agricultural Land" as per the section 2(14) then just relax.
thanq very much ashish...............the land is non agricultural this information is a lot helpful............
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