06 September 2013
I have sold an ancestral agricultural land inherited by me within the municipal limit of cuttack city, odisha state. The ownership of the land(RoR/patta) was transferred to my name on 12 june 2006. I have sold the land during september 2013. What will be the procedure for calculation of capital gains tax,arrive at the cost of acquisition and what are the options available in this case for me to save the capital gains tax. thanx n regards sidharth s panda
06 September 2013
The Indexation would be taken from 2006-2007 for the computation..
The Capital gain arising out from it you can claim exemption under sec 54B.
However, If you wish to purchase other residential property you can claim exemption under sec 54F. However, in this case you have to invest the whole proceed of the sale instead of just capital gain...
In case you are unable to utilize the sale proceed you can deposit the capital gain into Capital Gain Deposit Scheme before the due date of filing the return U/S 139{1}..
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