Tax liability on sale of land

one needs date of each side transactions to calculate.

Originally posted by : Tungnath Pandey CWA
	One of my known wants to sale his lands one is urban other one agricultural land. let me know  the tax liability arising out sale of said lands. Urban land was acquired for Rs.360000.sale value of urban land now 900000.some amount was incurred on land fencing around Rs.65000. Let me especially know the legitimate tax planning in regard to salle of agricultural.

if fencing is capitalized in balance sheet in the year of fencing then it would be added in cost  ( i.e 360000+65000) in absence of fencing shown the cost would be 360000 x indexed cost. . 

find the indexed cost and reduce the same from 900000, pay 20% ltcg of the diff if the date of aquisition is more than 3 years or stcg. 

well, for agricultural land u should see wether that land was covered under capital asset defination u/s-2(14)(e):-

cond-1:- the municipality where the land is situated does a population of 10,000 or more.

cond-2 :- distance  from municipality to the land situation not maore than 8 km.

if ur known agricultural land  does not  satisfies the above two conditions, then that  agri. land is not a capital asset and u can't calculate any capital gains for that.

otherwise u can calculate capital gain u/s-50B.provided if u purchase the other urban agricultural land.