Income Tax on rural land acquired by NHAI
This query is : Resolved
14 June 2011
Our .5 ACRE RURAL LAND ACQUIRED BY NATIONAL HIGHWAY AUTHORITY OF INDIA COMPENSATION GIVEN RS. 2.70 LAKHS AFTER DEDUCTING TDS @ 10% (RS.30000).
MY QUIRY IS ON WHICH HEAD WE HAVE TO FILE MY INCOME TAX RETURN, IS THERE ANY EXEMPTION IF RURAL LAND COMPULSURILY ACQUIRED BY STATE / NATIONAL HIGHWAY AUTHORITY, IF NOT WHAT IS THE RATE OF INCOME TAX
MY QUIRY IS ON WHICH HEAD WE HAVE TO FILE MY INCOME TAX RETURN, IS THERE ANY EXEMPTION IF RURAL LAND COMPULSURILY ACQUIRED BY STATE / NATIONAL HIGHWAY AUTHORITY, IF NOT WHAT IS THE RATE OF INCOME TAX
14 June 2011
EXEMTION IS ALLOWED UNDER SECTION 10(37) IN CERTAIN CASES
U WILL HAVE TO SHARE MORE DETAILS ABOUT LOCATION OF LAND, WHETHER LAND IS AGRICULTURAL, WHO IS THE OWNER OF LAND ETC.
CA MANOJ GUPTA
JODHPUR
09828510543
U WILL HAVE TO SHARE MORE DETAILS ABOUT LOCATION OF LAND, WHETHER LAND IS AGRICULTURAL, WHO IS THE OWNER OF LAND ETC.
CA MANOJ GUPTA
JODHPUR
09828510543
15 June 2011
The head under which you have to file the return of income is CAPITAL GAINS
As regards the taxability. If the land is prior to 31.3.1981 then you have to get certificate from the valuer for the value of the land as on 31.3.1981. The valuation as determined by the Registered Valuer shall be the base value of the land. On the base value you shall be entitled for indexation benefit. Which means the value of land shall further be increased for the purpose of Income Tax as per index fixed by the Income Tax Department and the tax @ 20%+3% shall be calculated to determine you Capital Gains Tax Liability. In case the land is less then 3 years old, no indexation shall be allowed and it is to be treated as short term capital gains on which you have to pay tax @ 30%+3% as tax. If the land acquired by you is after 1.4.1981 then the indexation shall be allowed only from the date of purchase till it is sold.
In case the land is Agriculture land and you have been doing agricultural since last 2 years and have sold the land then against sale you have to buy agricultural and to avoid the tax.
As has rightly been said by Manoj Guta that there are many details which you have not provided it is very difficult to answer you question properly.
C. A. S. S. Agarwal, MUMBAI
09870243410
As regards the taxability. If the land is prior to 31.3.1981 then you have to get certificate from the valuer for the value of the land as on 31.3.1981. The valuation as determined by the Registered Valuer shall be the base value of the land. On the base value you shall be entitled for indexation benefit. Which means the value of land shall further be increased for the purpose of Income Tax as per index fixed by the Income Tax Department and the tax @ 20%+3% shall be calculated to determine you Capital Gains Tax Liability. In case the land is less then 3 years old, no indexation shall be allowed and it is to be treated as short term capital gains on which you have to pay tax @ 30%+3% as tax. If the land acquired by you is after 1.4.1981 then the indexation shall be allowed only from the date of purchase till it is sold.
In case the land is Agriculture land and you have been doing agricultural since last 2 years and have sold the land then against sale you have to buy agricultural and to avoid the tax.
As has rightly been said by Manoj Guta that there are many details which you have not provided it is very difficult to answer you question properly.
C. A. S. S. Agarwal, MUMBAI
09870243410
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