My relative had bought one land parcel at Rs.1 LAKH in 1993 and would be selling now at Rs.43 Lakhs . Does she require to pay capital gains tax on the difference between sale price and indexation price. She will not buy any property out of that proceeds.
Kindly advise
Seller cum assessee has never filed any tax return. She is receiving widow pension. Land in Bilaspur was purchased in July 1993, this being agri land is being converted to residential status and to be sold at Rs.48 Lakhs minus Rs.5 Lakhs on account on brokerage,lawyers fees, tips elsewhere.So in hand Rs.43 Lakhs.
No plan to buy any property out of the sale proceeds.
Kindly advise how to move ahead . Is it compulsory to pay tax? Will seller's bank disclose receipt of such an huge amount to RBI under any guidelines?
CAclubindia
