Capital gain tax on sale of non factory land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2011 We are a company holding a piece of land not relating to our factory. We have purchased the same 10 years back. Now we have planned to sell the property. At now we want to know whether we have to pay capital gain tax or regular income tax on profit accrued due to this sale.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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14 March 2011 As per the definition of capital asset, Agricultural land which is situated within the specified area is a capital asset.

The Given case is a factory land and sale of factory land is a capital asset and gain arising from such tranfer shall be a capital asset

You can reduce the tax burden by investing the same in 54.

Conclusion you have to bear the capital gain tax