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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

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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

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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.