income tax

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godachappa.i angadi (Querist)
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04 August 2009 ihave purchased 3 acres of an urban agricultural land on 15-06-2004 by a payment of rs 2lacs per acre,and spent rs.60000/-to devp.authorty in 2007,rs100000/ at bangalore for to get permission for use of land for non agriculture purpose now i have deciced to sell on 05-08-2009,all the 3 acres of land to one sri vigneshwar griha Nirman Sangha consists of 40 members therin iam also one of the member & chairman also .what type of taxes i have to paytothe income tax dept.what type of tax burden will on the Vigneshwar griha nirman sangha if they have under taken to develop and allot the plots its members

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 May 2012 The income will be taxable under the head capital gain.

Long term capital gain will arise on the sale of the land.

Rs. 6 lakhs will be the cost of acquisition.

Rs. 60,000 and Rs. 1 lakh shall be cost of improvement.

The cost of acquisition and cost of improvement shall be indexed for computing capital gain.