Taxation on agriculture plot sale (short term capital gain)

Hi,

I have an agricultrual plot which I purchased in Nov 2013. I will be selling it in March 2015. Since I hold the plot for around 28 months, I am considering this as Short term capital gain.

The cost as per stamp duty while I purchased was 22 Lacs, and now when I am going to sell the cost as per Stamp duty is 26 Lacs. This complete amount I am going to invest in purchase of house before July 2016.

Now my questions are:

1. The buyer is going start paying the money. Where can I deposit the money, can I deposit in Savings account or do I need to open any capital gain account?

2. If I deposit in savings account, will it cause in auditing issue as such, like from where I am getting this big amount?

3. If I need to deposit in capital gain account? should I put all money 26 Lacs in capital account or should I just the profit amount of 4 lacs in capital gain account and remaining 22 Lacs in savings?

4. how will the taxation be done on short term capital gain. the registrtaion cost was 1.9 Lacs. so should I consider tax payment for 2.1 Lacs as this is my net profit?

 

I just wanted to know how what is the right process to put the money out of plot sale in a house purchase. (short terrm capital gain)

Thanks,

Ashish

Replies (2)

Dear , as per the section 54b of Income tax for the Capital gain , you can purchase the agriculture land from the sale of agriculture land within two year for the income tax saving. If you buy a house then you will be pay tax on Short Capital Gain.

is it urban agricultural land

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