14 January 2011
my client purchased a agriculture land of 5000 yard in sikandarabad for Rs. 500 per yard in f.y. 2005-06. now he wants to ploting of that land and 2000 yards for rs. 7000/- yard has been sold in f.y. 2010-11. My question is that what be the capital gain on that transaction even 3000 yard land has been unsold. pls advise me.
14 January 2011
Capital gains would be levied only on 2000 yards of land i.e. Rs. 6500 * 2000 after allowing indexation.
Better hire the services of a tax consultant otherwise in next year when the rest of land would be sold; the whole transaction may be treated as a business venture by the assessing officer and the benefit of capital gains may be lost.
A small mistake of not having services of a consultant or enjoying "luxury" of dealing the case at your own may turn the cost into lacs.
CAclubindia
