30 December 2012
We had brought a land in 1991 for Rs.20k and today it costs around 80lacs or something. We want to sell it so that we can buy property somewhere else. But we dont know whether we will have to pay income tax on the amount for which we have sold the land and if then how much it would be and also is there any other way. our household income is around 7.5lacs.
05 January 2013
On 20 lac you will be allowed indexdxtation and from the slae of 80 lacs the indexation value will be deducted. The figure so arrived shall be the capital gains. If you buy Land only then you have to pay Capital Gains Tax but if you invest the entire 80 lacs in residential house then no tax but the new house should be the first house.
You can invest the amount for 3 years in govermnet bonds then also there will be no capital gains
CAclubindia
