How to calculate long term capital gain solve the query?
This query is : Resolved
08 December 2011
DEAR EXPERT,
it is land before 1981 on father's name 2 acres transfer to son from father after his death.so in this case land's cost is not available.now son had improvement & doing various related exp.in f.y.2009-10 like N.A Exp,stamp duty & other related exp is approx 90000/-.then after this land improved as resident plot and 6 plot sale totally 260000/- to different customers on f.y.2010-11.how show that remaining plot in books of a/c. sheet. will long term capital gain applicable. & how saw this process in I.T return of f.y 2010-11.pls solution on it.if son purchase new agri land will applicable LTCG?
sir, can you calculate with above figures how ex set tax payable or not? plz answer urgently
it is land before 1981 on father's name 2 acres transfer to son from father after his death.so in this case land's cost is not available.now son had improvement & doing various related exp.in f.y.2009-10 like N.A Exp,stamp duty & other related exp is approx 90000/-.then after this land improved as resident plot and 6 plot sale totally 260000/- to different customers on f.y.2010-11.how show that remaining plot in books of a/c. sheet. will long term capital gain applicable. & how saw this process in I.T return of f.y 2010-11.pls solution on it.if son purchase new agri land will applicable LTCG?
sir, can you calculate with above figures how ex set tax payable or not? plz answer urgently
08 December 2011
Value as on 1.4.1981 may be adopted as cost of acquisition.
.
Take 1.4.2009 or any suitable date in FY 2009-10 ... say from the date since the Agri. activities if had been carried out before and stopped on such date of FY 2009-10, may be chosen as date of conversion.
.
From that date it will be deemed that capital asset has been converted into stock in Trade. Section 45(2).
.
Ascertain the fair market value on the date of conversion which will be treated as sales consideration for the capital asset. Tax will be paid in the year of actual sale.
.
The expenditure incurred on conversion may be added to the FMV and the difference between the FMV (FY 2009-10) and Sales
Value realised on sale of plots will be treated as business profit.
.
However, in your case, as the sales consideration is too small i.e.260000/- you will hardly be liable for any tax.
.
No need to purchase agriculture land.
As the time and the land prices have overrun.
.
Take 1.4.2009 or any suitable date in FY 2009-10 ... say from the date since the Agri. activities if had been carried out before and stopped on such date of FY 2009-10, may be chosen as date of conversion.
.
From that date it will be deemed that capital asset has been converted into stock in Trade. Section 45(2).
.
Ascertain the fair market value on the date of conversion which will be treated as sales consideration for the capital asset. Tax will be paid in the year of actual sale.
.
The expenditure incurred on conversion may be added to the FMV and the difference between the FMV (FY 2009-10) and Sales
Value realised on sale of plots will be treated as business profit.
.
However, in your case, as the sales consideration is too small i.e.260000/- you will hardly be liable for any tax.
.
No need to purchase agriculture land.
As the time and the land prices have overrun.
08 December 2011
thank you sir
but can you calculate with this figureaht is tax or nil ? please answer urgenly
but can you calculate with this figureaht is tax or nil ? please answer urgenly
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