To,
Dear all,
My colleagues have done following transaction.
1)First transaction :” X” was purchased 62R agriculture land(Outside Municipal limit) in April 1998 for Rs 2.5 Lakhs.
2) Second transaction : “X” has entered into agreement with Yin July 2009 by way of exchange i.e. X sold his agriculture land(62R) to Y and purchased his agreeculture(62R)urban land(within Municipal limit) for the actual consideration recorded in agreement to Rs 7.50Lakhs (Rural)and 7.85Lakhs(urban) where as Fair market value was 2.7 lakhs (Rural) and 32 lakhs (Urban). Stamp duty paid on Market value Rs 36lakhs i.e.whichever is higher .
3) Third transaction :” X” again entered into agreement sold his newly purchased urban land (62R)to “Z “in Dec2010 for actual consideration to Rs 21 lakhs ,Where as the market value recorded 33 lakhs.
4)Fourth transaction : Reinvested in another agriculture land outside municipal limit for Rs 25 lakhs.
In above case what will be the short term gain/long term gain? Please quote some law references. of similar cases and advice.
Thanks,
