Will I get answer for a question on long term capital gain tax for sale of land in this forum?
Amit Kumar Das (Retd) (236 Points)
21 June 2023Will I get answer for a question on long term capital gain tax for sale of land in this forum?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(167036 Points)
Replied 21 June 2023
Yes, Where is the question?
Amit Kumar Das
(Retd)
(236 Points)
Replied 22 June 2023
A piece of land measuring about 4 Kottah was purchased in FY 2003-04 from Siliguri-Jalpaiguri development authority under Govt of West Bengal at a price of Rs. X only.
It is a lease hold land. Development authority is the owner.
No construction was made and the land is lying vacant ever since.
Now, a business man of that area is showing interest to buy the land. It will be transfer of lease with permission of the development authority who will charge a fee of Rs.1 Lakh per Kottah for permission.
The prospective buyer has offered Rs. Y>>X
What will be LTCG after taking into account indexation?
Let me know the formula to be applied.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(167036 Points)
Replied 22 June 2023
The calculation will be in similar fashion, as in any other long-term assets sold.
Here the asset sold will be 'Rights in a Property.'
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