04 February 2011
A land is purchase on 1973 for Rs. 4000. A part of land equal to 20% is being sold on 07.02.2011 for Rs. 500000. So can anybody tell me how to compute capital gain arising from the same. Is there any exemption is available if the gained amount is proposed to invest?
04 February 2011
Since the property was purchased before 1980 u can take market rate as on 01.04.1981 as the deemed cost of acquisition and indexation will be allowable from 01.04.1981.
The gains can be invested in purchase of bonds u/s 54EC upto Rs. 50 lakhs witihin 6 months of the sale.
CAclubindia
