14 January 2011
A doctor friend of mine has asked for advice. His grandfather owned agricultural land just outside Baroda. The grandfather died many years ago and left the land to his 2 sons. My friend's father is in India but his uncle is in UK.
The proceeds are substantial because the land is going to be used for a business/shopping park.
I have found that sale of agricultural land in India does not attract any tax. But is that still the case if the land use has changed or is going to change?
If the profit on sale of land will attract tax, how is this calculated? Are there any reliefs/deductions available? In the UK we get tax free allowance on capital gains realised of £10,100 and the balance is then taxed at 18%.
Also if the profit is taxable in India is there anything you can do to reduce the tax bill? For example can the title to land be shared betweeen other family members before the actual sale?
Guest
Guest
(Expert)
14 January 2011
Clarify the distance of land from the Municipal limits of Baroda ?
CAclubindia
