Long Term Capital Gain on sale of Land

This query is : Resolved

RAJESH (Querist)
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10 March 2011 Hi,
My father had acquired a plot of land in 1970 at a very nominal value of Rs. 15250. This year (Dec 2010) he sold the same for Rs. 53.00 Lakhs. The land was not an agricultural land.
My query is:-
1. Can he seek exemption under section 54F?
2.He has booked a flat for which an agreement is made for 51.50 lakhs which is under construction and shall be completed by Dec 2012 and around 2 lakhs will be spent on registration at that time. So on this basis can i claim full exemption. (Presently only document is agreement for 51.50 lakhs and nothing for registration)
3. Till now i have paid to the builder around 14.00 lakhs and rest i shall keep in Capital Gain Account. How will the interest income from such capital gain be treated

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 March 2011 Capital gains can be calculated on the basis of value of plot as on 1.4.1981.
Valuation can be get done by the approved valuer.
He can avail exemption in the manner you have stated.
Interest Income is taxable under the head Income from Other Sources.
." Till now i have paid to the builder around 14.00 lakhs and rest i shall keep in Capital Gain Account."

The payments must be made from your father's account and not from your account. And also capital gain a/c should be opened in his name only.