CAPITAL GAIN QUERY

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)

20 April 2010

Dear All,

One Of My Friend received Sum of Rs 30,000 as share of profit from sale of land in rural area ( Not using for Agriculcher purpose) which he had got from his Father u/s 49(1)

he ( My Friend) really dont have any idea about when that land was purhcased by the party from whom

his father aquired land, because there was no proper detail of Date of Purchase. ( but he is sure that it was aquired before 1969 Approx.)

NOW MY QUETION IS........

1) Can he assum that land was Purchased before 1.4.1981 & will take Fair Market Value on 1.4.1981?

2) In What way he can get the Fair Market Value of that particular (which is sold) land?

3) Now what is best option to save his Tax Liability in above case ?

4) Can he get exemption in any other head than CAPITAL GAIN?

Dear Friends i have Given him Assurance that i will get it solved from CACLUBINDIA.....

Hope i will Have desired Suggetions From ur side......................

THANX IN ADVANCE.

Regards

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CAPITAL GAIN QUERY

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Originally posted by : ܔܢܜܔ ∂ιρєѕн♠♠♠
	Hi SAN, After going through this case, I have reached to the following conclusion. Hope it may be helpful to you. Answer 1: As stated in the given case the father of your friend is sure that the property is purchased before 1969. So he(Your friend) can assume that the property is purchased before 01.04.1981 and can take FMV on 01.04.1981. Answer 2: FMV is an estimate of the market value of the property, based on what a buyer would probably pay to the seller in the real estate market. Your friend can approach registered property valuers to determine FMV of the property. Answer 3: Here the Tax liability is on Rs. 30,000 received by your friend as a share of profit by his father u/s 49(1). As per the Act, income from impartiable estate is taxable in the hands of the holder of the estate. As given in this case your friend has received Rs. 30,000 as share of profit (i.e. income from property) from sale of land and not the share from the sale consideration received by sale of property by his father. So the tax liability is on his father and he is not liable to pay tax on Rs. 30,000. Answer 4: As given in answer 3, the son is not liable to pay tax on Rs. 30,000. Therefore the question of getting exemption under any other head of income does not arise.

Originally posted by : Amir
	Dear SAN, Ans to Q1. As Dipesh said, U urself replied it. So FMV as on 01.04.1981 can be taken as COA Ans. to Q2. Visit Income Tax Office and just obtain a list of Govt. Valuers from the PRO (Public Relation officer) & then get the certificate of FMV from any of those Valuers after paying certain fee. Ans to Q3. & Q4. Sorry but I couldn't understand this question since Cost is unknown as yet then how you have computed "Profit"... I mean if I am not wrong 30,000 must be share in Sale Consideration and not in Profit. First, Gain will be computed after ascertaing the FMV and only then the question of taxability or tax saving will arise. Since the Amount of Sale consideration is 30,000 only so don't think there will be any taxable gain which one would feel like saving.(especially in the light of benefit of indexation) Anywaz if at all there is any Gain, the same can be saved in terms 54EC & 54F

Originally posted by : Ankur Garg
	Sorry Bhai SAN i can't help you in Income Tax as am completely out of touch from Income Tax provisions. So i can't misguide with my foolish reply. Vaisa Fikar not---Amir and other experts hain na !!!