JOSEPH DAVID (GM FINANCE) (286 Points)
09 February 2011A company wants to exchange a land with another land
(1) Land is situated in same area, market value of both the lands are same.
(2) Land exchange is 4 Acres against 3.37 Acres
(3) Whether Capital Gain is applicable on Exchange of Land
(4) Whether Indexation is applicable for arriving cost of acquisition Value
(5) In Exchange what is sale consideration and acquisition cost to be considered for Income Tax capital gains Purpose.
(6) What will be the capital gain
thanks in advance
Joseph David
CA Shiv
(Business Controller)
(2987 Points)
Replied 09 February 2011
Well, It will be calculated as sale only...
I guess a land is NA.
Capital gain is attracted.
Show to separate transaction. Of sale and purchase.... Sale consideration will be the price at which it is transferred.
Cost acquisition wil be definately not the same. Consider your purchase price at the time of the land acquired in previous years
CAclubindia
