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?
THANX SIR CAN YO CALCUTE WHAT IS THE TAX IN THIS CASE WITH THE HELP OF ABOVE FIGURES?
08 December 2011
capital gain is applicable if the agriculture land is a capital assets. Now the land is converted in N.A. therefore LT. capital gain is applicable. Even if new agriculture land is purchased even then no exemption from the capital gain. Son have to invest the capital gain in infrastructure bond or to purchase a new house( if he is not the owner of any other house ). Take help of C.A. before finalising return.
08 December 2011
Get valuation from the approved valuer of the plot and ascertsain fair market value as on 1-04-1981 of whole plot and divided plot.Divide cost of improvement by 6. Apply inflation index and get indexed cost of aquistion for the plot sold. Deduct indexed cost from sale proceeds. The surplus is LTCG.
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