Query on Long Term Capital Gain Tax On Sale Of Residential Plot

Dear Sir,

 

I had purchased a residential land plot in May 1997 in Satara area at Aurangabad (Maharashtra). The registration deed was at a price of Rs 25000/-

I am selling it this month for a registration value of around Rs 16,000,00/-

The market price is different from the registration value both in buying and selling.

What would be the capital gains accrued in this transaction? what is the capital gains tax liability and how can it be saved entirely? what are the options available?

Could you please advise ASAP?

Best

Replies (6)
Quick Summary
This discussion addresses the capital gains tax implications of selling a residential plot purchased in 1997. The user seeks to understand capital gains calculation, tax liability, and methods for tax saving, including investing in Section 54EC bonds or purchasing another residential property. Advice is given on obtaining circle rates for accurate calculation and exploring available tax-saving options.

Tax liability will depend upon the Circle rate of the plot as on 01.04.2001.

You can save the LTCG tax by investment in Sec. 54EC capital gains bonds.

Sir, Thanks for the reply,

if I am unable to get the info about the circle rate of the plot on 01-04-2001.

Can it be computed linearly to get the fair market value of the plot? 

Best Regards

Anonoymous

Invest in residential property.

You can get it from Sub-registrar office of your jurisdiction.

 Sir,

Thanks for your help 

 

You are welcome.             

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