rajandesai (Executive) 05 April 2012
Dear Sir
I am senior citizen and having ancestoral non agricultural land inherited from last four generations. It is located and registered in Grampanchayat area. If I sell the same for consideration around 50lacs what will be my tax liability under capital gains tax.
Secondly if i invest the same in another house property in urban/semi urban area will there be any tax liability? If yes how to save the tax thereon?
Pl. guide.
RDesai.
Sagar Tilak (PROPRIETOR) 17 May 2012
The first thing you should check is whether the land is Rural Agricultural Land. If it is then its not a capital asset and hence Capital Gains does not arise on sale of the said land. In such case I would suggest you to take a certificate from Talathi saying that the said village is not having population over 10000. The certificate will help you which facing scrutiny assessment before tax authorities.
If the land is not rural agri land, then LTCG will arise. To compute the capital gain, you need cost of acquisition. As the land is bought four generations back, you must not be having purchase deed or cost of acquisition. In such case, you should get the valuation of land done from Govt.Approved valuer for the date 1st April 1981 as it will be your cost of acquisition and indexation on the same will have to applied over the same for capital gain calculation. The gain arising will be Long Term and hence the same can be utilized in new house property to claim exemption benefit u/s 54F.
I hope it resolves your query.
Member Strength 9,46,518 and growing..
© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.
