Tax on sale of ancestral land in telangana

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Ramesh

lecturer

21 Points Joined May 2017

Hi friends This query is regarding taxation on sale of agricultural land in a village in telangana My father has inherited agricultural land from his father and his father from his father .We dont know(today) whether it was purchased or how it was acquired. Dont know the purchase price or cost of acquisition.Now my father wanted to sell it . Now the question is.. FIRST POINT : will the amount from the sale is taxable ? To my information capital gain from the property is taxable( sale price - cost of acquisition). In this case selling price is known but how should we calculate acquition cost ? SECOND POINT : Buyer's version : Difference between government value and selling value ( selling value is more than government value) is taxable. Request any friend with the knowledge in taxation in telangana to help me clarify the above .This is little urgent thanks in advance

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209519 Points Joined July 2016

"FIRST POINT : will the amount from the sale is taxable ? To my information capital gain from the property is taxable( sale price - cost of acquisition). In this case selling price is known but how should we calculate acquition cost ?

= Get valuation report as on 01.04.2001 from governmental valuer, that wil be cost of aquisition on that particular date.

SECOND POINT : Buyer's version : Difference between government value and selling value ( selling value is more than government value) is taxable.

=Yes, whichever is more as per guidance value or registered sell document value.

CA S Praveen Kumar Reddy

Chartered Accountant

2195 Points Joined December 2014

Ramesh,If ur sell the land it will attract capital gain. So that means it's taxable at 20% with indexation and 10% without indexation. In this case u don't purchase cost then u can take approximate value as on that date. Approach any tax consultant for more.