Long term capital gain effect

This query is : Resolved

CA Ankit Anupkumar Luharka (Querist)
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19 November 2013 Please help, its urgent
The assessee have a land which he has received due to death of his father. The assessee's father had the land, and after his death, the land has been transferred to the assessee. The assessee father had acquired the land long ago, maybe 50 years back. Now the assessee wants to sell the land, what will be capital gain calculation on this. Can anyone help me? The cost of the land is very minimal at the time of purchase. Will it be necessary to make land valuation and then calculate the capital gain, or else what should the assessee do? Kindly suggest. Thank you

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)
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19 November 2013 First, please see if the land is agricultural or not. If so, then not taxable

If non-agricultural land, then for the purpose of capital gains:

Cost: Fair value as at 1-4-1981 is to be taken.

Indexation benefit: Indexation benefit is available from 1981 to the year of sale.

However, this issue is debatable.

This asset is considered a Long term capital asset and any capital gains is taxable @ 20%.