Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

capital gain

Raghavan (Tax Consultant) (88 Points)

06 August 2010

please clarify on the following topic

1. Purchase of Residential Site in the year 2004 for rs.500000/- and sold on 14.02.2010 for Rs.1300000/- and invested in the new site on 15.06.2010. Will there be a long term capital gain tax, if so what is rule and section.

2.. Purchase of Agricultural Land 20 years back for rs.28000/- and sold for Rs.600000/-in july 2010 will there be a long term capital gain tax

If the sale proceeds is gifted to son and married daughter will there be any tax.

Please clarifty

Reply
Follow
Share

2 Replies

Kshitij (Consultant) (62 Points)
Replied 06 August 2010

No Long term Capital Gain tax as u have invested the money in new site

Upgrade to CAclubindia Pro. Subscribe Now!

CA Deepak Joshi (TaxTalk) (178 Points)
Replied 06 August 2010

Hi Raghavan, 1)Well, since u hv invested the whole of the cap gain in the new site well before the due period prescribed in law, there is no capital gain taxation for u. 2)By God's grace u have sold only the AGRICULTURAL land :P B'coz by statute there is no capital gains on sale of agricultural land. HAd there been a land in urban area then it wud have been difficult to avoid tax. In your case, no capital gains taxation.