28 July 2012
An indvidual buy a agriculture lad with in mc limit registered amount is 10 lakh but he pay rs 30 lacs. after one month now the land is compulsary acquire by the govt and the registered value is 42 lac and all the payment received by cheque my question is that the capital gain on it is tax free / if no , than how can we save short term capital gain
30 July 2012
Correct. If the land was not used for agricultural purposes for the last 2 years by the assessee or his parent, Sec 10(37) won't apply. Thus the above transaction squarely falls under the tax net under the head Short Term Capital Gain.
If the assessee has loss under any other head, it can be set-off with the capital gain.
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