29 December 2010
By White Money you can but Agriculture Land as a Investment or for Agro purposes.
Capital Gain @ 20% will be on Land at the time of sale, if not used for Agricultural purposes by you and your family up to 2 years after the date of purchase.
In other case No capital Gain shall arise on sale if it is used for Agricultural purposes by you and your family up to 2 years and may be reinvested again in Agriculture Lands.
If Land purchased in the name of Parnets then money came from to be prove as source of income,transfer took place without consideration or gift need to be established.
Amount paid wihtout consideration to a relative in over of Rs.50000/= Tax shall be liable on that amount.
At the time of sale father will be assessed as described for you supra but rate of tax will be same but slab will be high.
CAclubindia
