Short term capital gain

This query is : Resolved 

28 July 2012 An indvidual buy a agriculture lad with in mc limit registered amount is 10 lakh but he pay rs 30 lacs.
after one month
now the land is compulsary acquire by the govt and the registered value is 42 lac
and all the payment received by cheque
my question is that the capital gain on it is tax free / if no , than how can we save short term capital gain

28 July 2012 Sec 10(37) specifically exempts such income from capital gain.

No tax payable.

30 July 2012 thanks for replay
the main problem is the purchased by assasee may 2012, and acquire by govt in june 2012.

but in section 10(37) the land was used by assasee from last two year as agriculture land . but assase purchase it before one month.

plz clear


30 July 2012 Correct. If the land was not used for agricultural purposes for the last 2 years by the assessee or his parent, Sec 10(37) won't apply. Thus the above transaction squarely falls under the tax net under the head Short Term Capital Gain.

If the assessee has loss under any other head, it can be set-off with the capital gain.



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